The Federal Housing Finance Agency (FHFA) announced earlier this month that Fannie Mae and Freddie Mac would extend the Home Affordable Refinance Program (HARP) through December 31, 2015 earlier this month.
The HARP Program was originally set to expire December 31, 2013.
The extension will allow more borrowers who have little or no equity in their homes take advantage of refinancing at today’s lower interest rates.
Eligibility for a HARP refinance is based upon the following criteria
- The borrower’s current loan must be owned or guaranteed by Fannie Mae* or Freddie Mac**
- The current mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009
- The current mortgage must not have been refinanced under HARP previously unless it is Fannie Mae loan that was refinanced under HARP from March-May 2009
- The current mortgage’s loan-to-value (LTV) ratio must be greater than 80%
- The borrower must be current on their mortgage payments, have no late payments in the prior 6 months, and must not have more than 1 late payment in the prior 12 months
In addition to announcing the extension of the HARP program, the FHFA further announced the launch of a nationwide campaign designed to inform borrowers about the HARP program and its eligibility requirements in the hope that it motivates more borrowers to refinance using the program.
The HARP Program has already assisted approximately 2.2 million borrowers refinance since April 2009.