At this point in time there is a good chance you have heard of the HARP program, or Home Affordable Refinance Program. Many homeowners across the country are taking advantage of this once in a lifetime opportunity to lower their interest rate and mortgage payment. Unfortunately, there are requirements to this program that are leaving many homeowners out.
If you don’t qualify for a HARP loan there are other options for you, but they are still limited. If you have a FHA loan it is possible you could qualify for a ‘Streamline FHA Refinance.’ These loans enable those who currently have an FHA mortgage to refinance even if you’re underwater on your home. However, there are still requirements that must be met to get approved for an FHA streamline. It is important to discuss your options with a licensed mortgage originator.
Another option is to reach out to your current mortgage holder and ask for a loan modification. This can be an extremely time consuming and frustrating process, but many people who have pursued loan modifications have successfully reduced their loan balances, payments, and interest rates.
Finally, there is the possibility of HARP 3.0, but we are unsure of what this program would look like. Many people are hoping that if the existing HARP program is enhanced, that one of those enhancements would be the ability for those whose loans are not owned by Fannie Mae or Freddie Mac would be able to refinance. If this were to happen there is a good chance that responsible homeowners across the country would now qualify to refinance into low interest rate mortgages.
If you are unsure if you qualify for HARP we recommend speaking to a licensed mortgage originator in your area.