New Changes to the HARP loan could help more homeowners


By Joseph Small

Home FloatingMost of my readers are familiar with the Home Afford Refinance Program or HARP. The HARP program was established back in 2009 as a way to help responsible homeowners refinance their home loans, even if they owe more than it is worth (or underwater mortgage, as it is sometimes referred as). Many responsible homeowners in Arizona – especially in cities like Tucson and Phoenix – have taken advantage of this great program. However, there are additional responsible homeowners who have not had the opportunity to refinance to today’s low rates because their loan does not meet the current HARP 2 refinance loan guidelines.

The Federal Housing Finance Agency estimates 1-2 million homeowners are still eligible for the HARP 2 refinance loan and paying above current market rates. One of the main criteria for qualifying for HARP is the borrower’s existing loan must have been sold to Fannie Mae of Freddie Mac by May 31, 2009. I have had dozens of homeowners that I had to turn away because the lender held the loan and did not sell it to Fannie or Freddie until after the May 31, 2009 date – even though they purchased prior to that date. I always felt that these homeowners were getting the short-end of the stick because they have no control when there loan was “sold” to Fannie or Freddie”.

Well, I have some good news to those responsible homeowners. The good news is that effective October 27, 2013, the requirement will no longer be based on when the loan was “sold” to Fannie Mae or Freddie Mac, but on the day of the actual note was closed on. Borrowers who closed on or before May 31, 2009 will be eligible to refinance under HARP as long as the loan is on Fannie or Freddie’s books.

And if you think you owe more on your home than it is worth and would like my team and I to see if we can help you, then please give us a call or send us an email. Contact Us.

Tucson /S. Arizona: (520) 303-5620 Phoenix /N. Arizona (480) 648-1733

Joseph Small and his Team at Guild Mortgage Co. helps Tucson and Phoenix Homeowners with all their HARP 2 refinance mortgage loan needs. Give them a call today! Also proudly serving Sierra Vista, Green Valley, Sahuarita and Nogales Arizona. Give them a call today! Maybe one day you too will say, “Joe’s My Lender!”

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