The House Affordable Refinance Program (HARP) is especially beneficial to individuals who have been investing in real estate for a long time. They may now find themselves in a situation where the worth of their property sinks with mortgage rates at a high. The other names that this program has are the DU Refi Plus and the Obama Refinance Program.
This refinancing program is a government initiative administered by the Federal Housing Finance Agency (FHFA), which began in 2009. President Barack Obama had ordered that this program has to be inexpensive to preserve the whole economy and keep people safe in their homes.
Later, to help out more homeowners, the FHFA revamped the program and dubbed it HARP 2.0. This article covers the program’s characteristics and advantages to provide a comprehensive knowledge of how the HARP 2.0 DU RefiPlus Program may help consumers.
Requirements of HARP Program
The essential characteristics of the program are explained by the mortgage company in Jacksonville, AL, to assist consumers in comprehending the loan program. Moreover, for any mortgage to become eligible for HARP refinance, it has to follow guidelines such as:
• This loan has to be guaranteed by Fannie Mae or Freddie Mac.
• Before the year 2009, May 31, it has to be owned by Freddie or Fannie
• Never been refinanced under HARP before.
Requirements for HARP 2.0
Any borrower who wishes to qualify for the HARP 2.0 refinance provided by mortgage experts in Gadsden, AL, needs to follow requirement guidelines like:
• The minimum percentage of LTV has to be 80%.
• There will be no late payments for the coming six months, and only one late will be allowed for the next twelve months.
• A minimum credit score has to be 620.
• The maximum DTI percent needs to be 450.
• Increase in monthly payments of no more than 20%.
Property Edibility
Property varieties that require getting into the HARP program those experts of home lending in Jacksonville, AL, state are:
• Condominiums
• Manufactured homes
• Detached residence of single family
• Attached with 1 to 4 units
• Townhomes
• Planned Unit Developments
As per mortgage experts in Anniston, AL, HARP is open to non-owner-occupied investment houses and second homes. And it is not like the other loans that are available to primary residents.
Benefits of HARP Program
According to Fannie Mae, borrowers must get a significant advantage from getting refinanced, which is also known as a net tangible benefit; otherwise, a new loan can become a waste of money for everyone. The advantages of getting into the HARP 2.0 program that mortgage experts in Jacksonville, AL can provide are:
• Mortgage payments become lower every month.
• Interest rates are low.
• Loans with a shorter term.
• Switch to a more stabilized mortgage product.
Conclusion
Following these requirements and benefits that the borrowers can get, they must improve their credit scores to get the best lowest possible rates. Also, decreasing the ratio of debt-to-income can become beneficial.
So, if you are looking for help with your mortgage, then contacting the mortgage lender in Talladega, AL, can be beneficial. Professionals like mortgage lenders can help out not only with short-term financial goals but with long-term as well.
Resources:
Home Lending Gadsden AL – Mortgage Company Anniston AL – Mortgage Company Jacksonville AL
