The Federal Housing Finance Agency (FHFA) Granted The Home Affordable Refinance Program (HARP) A Two-Year Extension
Oh, the sweet sound of the government (in this case the FHFA, Fannie Mae and Freddie Mac’s regulator) extending the HARP program. The HARP program had been due to expire at the end of the year but with the extension will live until a least until December 31, 2015.
Like the Mortgage Debt Forgiveness Relief Act, the government determined that many homeowners would benefit from the extension of the program and that letting it lapse would cause a severe impact among still struggling or underwater homeowners.
To date, more than 2 million homeowners have refinanced through HARP. Those HARP numbers include hundreds of thousands of underwater borrowers. The FHFA reports that 252,443 borrowers with loan-to-value ratios over 125 percent have been able to refinance through the program.
The FHFA stated that many additional homeowners can still qualify for HARP.
Updated HARP Guidelines
For the most updated guidelines, FHFA outlined the following eligibility requirements for the HARP program:
- The loan must be owned or guaranteed by the GSESs
- Loans must have been sold to the GSEs on or before May 31, 2009
- The mortgage can’t be one that was previously refinanced under HARP unless it is a Fannie Mae loan that was refinanced under HARP from March to May, 2009
- LTV must be greater than 80 percent
- Borrower must be current on their mortgage payments with no late payments in the last six months and no more than one late payment in the last 12 months