For homeowners who are considered underwater on their mortgage, the HARP Mortgage Extension offer has been extended for another year into 2016. The deadline to apply is December 31, 2016. This program is meant to help those homeowners who may be facing a high payment that is not helping with getting their actual balance down. Basically, with the HARP program, the loan is refinanced with a lower interest rate, that could result in a lower monthly payment.
Requirements to Meet the HARP Program
There are a few requirements that people have to meet in order to qualify for this program. These requirements are:
- The loan has to have been made before June 1, 2009
- The loan is owned by Fannie Mae or Freddie Mac
- Your loan to value ratio is higher than 80%
- Have to be current on your mortgage payments and not missed or been late on a payment in the past six months. If you have had a late payment, this can only have happened once in the past year.
Each state has numerous residents that could be eligible for this program. According to the government, around 600,000 borrowers throughout the United States could qualify for this program. You do have to meet certain eligibility requirements via the lender, and each lender is going to be different. Thus, it is worth your time to shop around. The credit score and credit history of a borrower is going to affect the rates that are given from a lender. For those who have a credit score that is under 620, they are going to find it most difficult to find a lender who is going to work with them. The same can be said if the person has a credit history that is less than perfect.
The extension of this program is meant to help borrowers who may have been working on getting their credit back into shape to qualify. The good news is that bankruptcy should not affect whether you can qualify for this program or not. For homeowners who are underwater, this could be the one aspect that helps them more in the long run.