The Making Home Affordable modification of mortgage program is the government’s stimulus package for struggling homeowners. There are two
modification of mortgage options under this program for homeowners wanting to keep their homes. The Obama modification of mortgage programs
are structured to help homeowners with affordable monthly payments while preventing foreclosure on their home. One is HARP for modification of
mortgage refinance and the other is HAMP – loan modifications. The basic guidelines for the HARP program are pretty similar to the HAMP
program and slightly different than a traditional refi. Professional help from companies like RTS Processing can assure proper documentation
and representation of homeowner’s unique situation for a quick and successful home modification loan or modification of mortgage refinance.
The Making Home Affordable Program has two independent modification of mortgage options, one of which is HARP or the refinance program. HARP makes provision for homeowners who cannot profit from a normal refinance option. It allows up to 25% more than the existing equity.
However, the precise guidelines need borrowers to prove their income and meet the set standards in order to be eligible for this home modification loan opportunity.
The guidelines for the HARP modification of mortgage series are as follows:
1. Homeowners have to be living in the house that is being refinanced.
2. Their home mortgage must be owned by either Freddie Mac or Fannie Mae
3. The mortgage on the house cannot be behind.
4. Makes a provision for up to 125% of loan to value ratio to homes with negative equity.
5. Allows modification or refinance to at a low level affordable interest rate.
The plan aims to help homeowners at risk of default, but who are as yet not delinquent with their mortgage payments. Borrowers with an
adjustable rate mortgage can particularly benefit from this modification of mortgage program. By refinancing into a low fixed rate home
modification loan they can avoid the extra financial burden of increased payments when their variable interest rate adjusts.
The Making Home Affordable Program makes provision for homeowners who cannot benefit from a regular refinance option. It allows up to 25% more than the existing equity in the house to be refinanced. However, as with the HAMP program, the exact guidelines require borrowers to establish their income and meet the set standards to take advantage of this modification of mortgage program. Currently, lenders are very cautious to offer traditional refi’s to homeowners, even homeowners who are eligible for refinancing. If you are experiencing a hardship but are still able to keep up on your mortgage you may be qualified for a refinance of your loan via HARP.
HARP is comparable to traditional refi’s in that it offers you a superior interest rate, usually at better terms, such as 30 years fixed. The chief difference is that it does not permit you to withdraw money out. Different than traditional refinances, you are not able to withdraw money for things such as home repairs or the repayment of other debts with this modification of mortgage. However, if you are looking for an improved mortgage payment and for better loan terms and are not overdue on your current mortgage payments a HARP loan refinance might be the best selection for you. This is especially true if you do not have stellar credit or any savings for a down payment.
Call RTS Processing today to discuss your likely qualifications for a refinance through HARP. Why put off to start saving thousands tomorrow when you can be saving them today with a modification of mortgage.
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