Does HARP II mean actual help for 'underwater' homeowners?
A new federal program could bring some relief to millions of Americans who are "underwater" with their mortgages.
Last November, federal regulators unveiled the operational details of the Home Affordable Refinance Program (HARP), part II. HARP II is designed to help millions of Americans whose home values have decreased below their existing mortgage balances. This new program would streamline the refinance process by eliminating appraisals and extensive underwriting requirements for most borrowers as long as homeowners are current on their existing mortgage payments.
Program highlights include the following:
- No appraisal is needed.
- Loan must be current to be eligible.
- Only loans that are guaranteed by Fannie Mae or Freddie Mac are eligible.
- Loan limits will be restricted to $417,000 or less.
- Homeowners who have refinanced since May 31, 2009, will not be eligible.
On March 11, the average rate on a typical 30-year fixed-rate mortgage fell to 3.93 percent. The combination of the lowest fixed rates in 70 years along with HARP II allows homeowners a once-in-a-lifetime opportunity to improve their financial situation.
For more information and assistance regarding HARP II, or if you have any mortgage or loan-related questions, contact Tom Buslee of Tradition Mortgage, the Education Minnesota ESI sponsored mortgage provider, 952-252-4490, tom.buslee@traditionllc.com or www.mneducatorshomes.com.
April 19, 2012