The New HARP Program wasAnnounced by the President, October 24, 2011, and has been updated allowing more homeowner’s to take advantage of the program.
The New Home Affordable Refinance Program will be considerably enhanced by having several more benefits. Main one being the maximum Loan to Value (LTV) cap has been removed on home owners looking to refinance into a fixed rate mortgage. Automated values will be determined and end results being that an appraisal of the property would not be required. HARP was first established in 2009, for Fannie Mae and Freddie Mac, HARP addresses situations where the homeowner’s property value has fallen causing them to no longer to qualify under traditional underwriting criteria. Homeowners with a loan owned by Freddie Mac or Fannie Mae have the opportunity to refinance with any participating lender as long as the resulting loan is less than 125% of the current property’s value.