A critical part of Fannie Mae's role in the Making Home Affordable® Program is the Home Affordable Refinance Program (HARP), available for refinances of existing Fannie Mae (and Freddie Mac) loans. The goal of the refinance effort, as announced by the President, is "to provide access to low-cost refinancing for responsible homeowners suffering from falling home prices." The expectation is that refinancing their mortgage will put responsible borrowers in a better position by reducing their monthly principal and interest payments or moving them from a more risky loan structure (such as interest-only or short-term ARM) to a more stable product.
Advantages: There is NO credit score requirement. You can be upside down on your home value. Example, you owe $100,000 on your home is valued at $80,000. Traditionally you would not be able to refinance because you would owe more than the home is worth. With this program you will be able to refinance to a lower rate! This is a limited time these types of loans will be around. The government has approved these loans for a temporary time frame. The other great part about this program is that there is NO appraisal. This will save you about $550 on your appraisal fee.
There are a few requirements that need to be met for this type of loan. You would have to had financing that was on or before May 2009 and the home owned by Fannie Mae or Freddie Mac. Don't get this confused with who services the loan. You may send your payments to Bank of America, Chase, or some other bank but your loan is more than likely owned by a secondary market.
If you want to know who owns your loan contact us and we can find out who owns your loan and if you qualify for the HARP program. Call 877-818-4603 today.