With all the ballyhoo about the new HARP guidelines, it still would take a reasonably sane person hours to sort through all of the changes for the new and improved HARP. Maybe it’s not so New and Improved but it makes it look like the government and banks are doing something about this continuing distressed homeowner crises.
In all honestly, some things have improved. We’ve attached links to B of A’s new MHA guidelines which offers a condensed version of the guidelines. Some of the improvements include: No Debt-to-income ratio limits (some exceptions) and no minimum credit score required unless P&I payment increase greater than 20%. However, a homeowner must be current with their payment and many other restrictions apply.
Keep in mind that then if homeowner qualifies that it might not be the silver bullet. For example, if you have a $400K mortgage and you’re house is worth $250,000, then even if you qualify for HARP it still might not be the best option because you’ll just be paying a lower payment into a home that will not see equity for a while. In other words, you may be putting a band-aid on a severed arm.
Click on link below for a look –