Great News for Homeowners: The Federal Housing Finance Agency Has Extended HARP And Its Benefits

Last week, the Federal Housing Finance Agency (FHFA) extended the Home Affordable Refinance Program (HARP) for an additional two years, pushing the expiration date to December 31, 2015 rather than December 31, 2013.  FHFA’s reasons for doing this have been made clear.  According to FHFA Acting Director Edward J. DeMarco, “More than 2 million homeowners have refinanced through HARP, proving it a useful tool for reducing risk. We are extending the program so more underwater borrowers can benefit from lower interest rates.”

Along with the extension of the HARP program, the FHFA also has plans to launch an informative campaign across the country to make sure that homeowners are educated about everything that HARP offers.  This campaign will include information on the requirements to be eligible for HARP as well as how homeowners can use HARP to better their financial condition and take advantage of the enormous benefits.

The HARP program’s primary purpose is to assist homeowners who currently owe more on their home mortgage than what the property is worth.  Extending the program only means an extended amount of time in which American homeowners can take advantage of this great opportunity to get back on track with their mortgage.

In order to qualify for HARP, homeowners must meet the following guidelines, as per the FHFA’s press release dated April 11, 2013.

• The loan must be owned or guaranteed by Fannie Mae or Freddie Mac.
• The mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.
• The mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009.
• The current loan-to-value (LTV) ratio must be greater than 80 percent.
• The borrower must be current on their mortgage payments with no late payments in the last six months and no more than one late payment in the last 12 months.
• Borrowers should contact their existing lender or any other mortgage lender offering HARP refinances.