First thing you have to take a look at is the newest financial along with your percentage records. Getting entitled to the fresh HARP system, you need to be most recent on your home loan repayments. Concurrently, you can not have payments that have been over thirty days later in the last 6 months, without one or more missed fee within the last 12 weeks.
Financial
People mortgage loan we should refinance using HARP must be protected otherwise belonging to Frannie Mae or Freddie Mac. If you’re not yes hence lender possess your current real estate loan, you can check their Freddie Mac computer or Frannie Mae financial reputation.
Mortgage Sorts of
Are entitled to this new HARP system, you could only have a normal home loan. Other mortgage alternatives for instance the USDA, FHA, otherwise Virtual assistant mortgage commonly acknowledged for the HARP re-finance program.
One Use
Your elizabeth property immediately after. So if you have had to re-finance your home through this system in advance of, you might not be able to refinance a second date.
Origination Date
Their mortgage need to have an enthusiastic origination day towards the or ahead of , in order to satisfy the needs into the financing. You can use the various tools mentioned above locate your origination date, or you can label 800-7FANNIE otherwise 800-FREDDIE between 8 was and 8 pm east time.
Occupancy
Your house we want to re-finance on HARP program has actually several occupancy legislation you must pursue become eligible. The house sometimes needs to be the majority of your quarters, one device second house, otherwise a-one so you’re able to five device investment property.
Several factors could make the new HARP re-finance system a great fit for most people. As it was to begin with designed to assist property owners rating all the way down financial costs, this program would-be a great fit proper who wants in order to refinance the newest mortgage loans but could have been refused by other lenders.
- The mortgage-to-worthy of ratio is more than 80% of residence’s well worth
- The fresh homeowner has been turned down to possess refinancing by traditional lenders
- The resident possess a credit score out of 620 or maybe more (perhaps not a requirement)
- Home loan repayments was current
Individuals who Wouldn’t be a good fit towards the HARP System
Towards the opposite side, there are some people who this new HARP system wouldn’t be a good fit to have. While you are trailing or even in default in your home loan, you will never end up being qualified for that it loan program. Some other instances could well be:
- The brand new citizen skipped more than one homeloan payment over the past 1 year
- Obtained currently refinanced with this system immediately following ahead of
- The initial home loan is not using Freddie Mac or Frannie Mae
- The mortgage-to-value proportion is below the 80% mark
Difference between the fresh new HARP, HAFA, and you may HAMP Applications
Once the we’ve got stated more than, the fresh HARP financing is for somebody who try most recent to their Frannie Mae or Freddie Mac computer mortgage without you to definitely hardly any missed repayments. HARP is actually a whole refinance program, which can help to reduce rates of interest and provide an even more reasonable home loan repayments. The new qualifications requirements are mentioned above.
HAMP Program
New HAMP program was created to assist people who’re within the likelihood of defaulting on their most recent financial to switch and you can customize they in place of a whole refinance. Particularly, they’re able to to give your loan’s installment title, decrease your interest rate, place your repayments inside forbearance, or button out-of a variable interest to help you a fixed notice rate. You must meet up with the after the conditions becoming experienced qualified to receive this option:
- The home need to be most of your, individual house. People rental or financing attributes are not greeting.