HARP Refinance In Medina Ohio

HARP Has Been Replaced With High LTV Programs.

HARP helped struggling homeowners refinance to lower rates and even build equity on their homes. However, since the program ended in 2018 two federal initiatives took its place. There some major differences and a few similarities we want to inform you about.

What is a HARP Mortgage Refinancing?

The Home Affordable Refinance Program was created by the FHFA in 2009 and discontinued in 2018. It allowed homeowners with a LTV ratio exceeding 80% to refinance without paying for mortgage insurance.

Since HARP ended, what programs are similar?

In place of HARP are two programs, Fannie Mae’s High LTV Refinance Option and Freddie Mac’s Enhanced Relief Refinance. The difference between these two programs and HARP is that they offer reduced monthly payments, lower interest rates, shorter loan terms and the ability to convert an adjustable rate to a fixed-rate mortgage.

Whats the difference between HARP and the new programs?

HARP allowed homeowners to use the program once, if you’ve refinanced with a HARP mortgage you’re ineligible to use the new high LTV programs. However, LTV programs have no limit.
Fannie Mae and Freddie Mac require delinquent loans to be at least 15 months old before they can be refinanced. Also since these new programs are based on the LTV ratio (the loan balance divided by appraised value), the require a minimum of ratio of 97.01% for single-family homes. Which is higher than the 80% minimum LTV required by HARP.

How can I become eligible for the new programs?

Borrowers must have:

  • A Fannie Mae or Freddie Mac mortgage note date on or after Oct.1 2017
  • No delinquent mortgage payment in the past six months
  • No more than 30-day delinquency in the past 12 months
  • No delinquent payments more than 30 days past due