Mortgage HARP Bill Spells Relief for Home Owners

The continued struggle of underwater homeowners in California and other parts of the country has led to a more aggressive federally sponsored refinance program. The new version of the Home Affordable Refinance Program, or HARP 2.0 as it is being called, is aiming to make home payments more manageable for underwater mortgage owners. For the 10 million underwater borrowers, the opportunity to make lower payments at a lower rate is just what they need, but as always, there are a few requirements to meet before receiving the benefits:

The main qualification is that either Fannie Mae or Freddie Mac must own your mortgage. If you are unsure of this go online to check. Try Fannie’s website first, as they are the larger company. If you’re still unsure talk to a mortgage broker, as he or she will have the necessary resources to find the answer. One San Diego HARP lender says that this Government program will not only help the individual homeowner but also the local and state economy.

Another requirement is that you are current on your payments. According to HARP 2.0 this means only one late payment in the past year, and zero late payments in the last six months. If you do not meet these qualifications right now, wait it out until you do, after all smaller payments will make anyone happy.

Do not worry about poor credit. This program is meant to aid underwater borrowers, not punish people with poor credit. There is no minimum credit score, appraisal or qualifying income needed. As long as you are a Fannie or Freddie borrower and you are current on your payments then this program is aimed to help you.

The Home Affordable Refinance Program is intended to help underwater borrowers, although some people may not meet the qualifications many are benefitted by it. When it comes down to it, lower mortgage payments are better, check to see if you qualify today and start saving money every month.