Extension of the Home Affordable Refinance Program

Extension of the Home Affordable Refinance Program

On March 11, 2011, the Federal Housing Finance Agency announced two exciting changes to the Home Affordable Refinance Program (HARP). This program is for borrowers who have demonstrated an acceptable payment history on their mortgage, but due to a decline in home prices or where mortgage insurance is not available, have been unable to refinance to obtain a lower payment or move to a more stable mortgage product. Here is a quick re-cap of the changes:

• The program has been extended by one year. Lenders can continue to originate HARP loans provided the note date is on or before June 30, 2012.
  
  
• The program has been expanded, and more loans will now qualify for the program. Previously to be eligible for a HARP loan, the existing loan had to be purchased by Fannie Mae or Freddie Mac prior to March 1, 2009. This date range has now been expanded to include loans purchased by the agencies prior to June 1, 2009.

This means that people who may not have been able to take advantage of a HARP refinance in the past may now be able to do so.

Give me a call if you want to learn more about these changes. I'm always happy to answer any questions you may have!