Do you owe more on your home than what it is worth?  Do you feel like you are drowning in your mortgage? Then the Home Affordable Refinance Program (HARP) is for you!  The key requirement for HARP eligibility is that the home loans must be owned by Fannie Mae or Freddie Mac.  You are not alone.  There are almost 11 million homeowners that are underwater with their home mortgages.  The federal government wants to stabilize the housing market with the hopes of boosting the overall economy.  This is great news for you.  Now, how can you take advantage of this program?  Here are some guidelines:

  • You must be current on your mortgage payments
  • You can only have been 30 days late on one payment in the last 12 months
  • You must have a reasonable ability to pay the new mortgage payments.

Some benefits of the Making Home Affordable Program are:

  • There is no loan-to-value (LTV) cap for fixed rate loans.  In the previous versions of HARP, the LTV could not exceed 125% of your appraised value on your home.
  • The fees that Fannie and Freddie charge lenders are being cut.  These reduced fees are being passed on to you, making your loan cheaper.
  • The income requirements have been relaxed.  A high debt to income (DTI) does not automatically disqualify a borrower.  In most cases you have to show a reasonable ability to pay
  • Credit score requirements have been relaxed.  The lender will determine if the borrower is an acceptable credit risk.  So a low credit score does not automatically mean you will not qualify.

After reviewing the above guidelines and benefits, if this seems like a winning situation to give you some relief with your mortgage payments, you need to start your refinancing process.  First, get together as much information as you can.  This will include the balance on your mortgage, the appraised value on your home (your last appraisal), proof of your income and checking on your credit score.  Once you are armed with your information, you need to find a suitable lender.  Find a lender that is willing to work with you, provide you with the best interest rates and customer service. Check out  They can help you with your refinancing needs.
The government’s goal with these new guidelines is for you to be able to lower your mortgage payments and give you some breathing room.  Take advantage of this program today.  Don’t delay.