Since March 2009, the federal government’s HARP (Home Affordable Refinance Program) program has helped over 3.2 million American families refinance their homes. These families thought it was not possible because they either had negative, limited or no equity at all.
If you’re in the same boat as these families, you can apply for a HARP loan program. However, you have to qualify first and complete the requirements below.
Qualify for HARP
To be eligible, you should have a regular income, valuable assets, and of course, an excellent credit score. You should also sign loan disclosures and various financial documents that lenders will ask for. As for the underwriting process, the same steps used in conventional mortgages are applied.
If you qualify, complete the requirements and follow these preparation guidelines:
Check for Fannie or Freddie Mortgages
Make sure that your mortgage is under Fannie Mae or Freddie Mac. You can check it on their respective websites. You should also check if these government-sponsored enterprises guarantee your property. If it is, you’re eligible.
Determine the age of your mortgage. If your mortgage started before May 2009, you’re not eligible for HARP. You can check the date in your closing paperwork.
With or without mortgage insurance, you can still get a HARP loan. If your lender declares you’re not eligible because you don’t have insurance, start looking for another one.
Check your credit reports to make sure that all your mortgage payments are on time. Delayed payments are allowed, though – thirty days delay for the last six months and one late payment for the past year.
Finally, you should complete all your paperwork. You are required to provide pay stubs and your wage and tax statement, or W-2. You will also need to give copies of your insurance information and driver’s license. Financial documents such as your bank statements will also be asked from you.
HARP loan program can be determined by the speed of how long you were able to provide these requirements. Start completing them to get your refinancing loan ASAP.