Home Refinance Loan Compete

Posted onJanuary 24, 2012 - 7:45 pm by Admin | 0 Comments

As part of the Financial Stability Plan, the Obama Administration created The Making Home Affordable Refinance Program. The program was created to help struggling Americans stay in their homes and avoid foreclosure. There are two parts to the program, the Home Affordable Refinance and the Home Affordable Modification.

Home Affordable Refinance Program (HARP)

HARP is part of the program that was developed for homeowners who aren’t able to take advantage of lower interest rates because if decreasing home values. This part of the program is for credit worthy individuals that are not behind in their current mortgage payments. HARP has a fixed interest rate over the life of the loan and could be especially beneficial for homeowner’s with an adjustable mortgage rate.

HARP Mortgage Refinancing Qualifications

  • The current mortgage loan must be owned or guaranteed by Freddie Mac or Fannie May
  • The amount still outstanding on the first mortgage cannot be more than 125% of the current market value
  • The current mortgage payments must be current and no late payments over 30 days in the last 12 months
  • The homeowner(s) must be able to make the refinanced payments (income to debt)
  • The new mortgage needs to improve the stability of the loan

Home Affordable Modification Program (HAMP)

HAMP is part of the program that was developed for homeowners who can’t make their monthly mortgage loan payments. Unlike HARP, if the homeowner has missed payments on their mortgage, they may qualify for the modification program. In order to qualify for HAMP, the home loan does not have to be owned or guaranteed by Freddie Mac or Fannie May.


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