Underwater Mortgage?
Potential Great News for Underwater Homeowners!
This week the Federal Housing Finance Agency (FHFA) announced that it would be revising its rules for the Home Affordable Refinance Program (HARP).
The move isn’t entirely unexpected, and the revisions will make it easier for more families with underwater mortgages to qualify for HARP.
What Is an Underwater Mortgage?
Generally, underwater mortgage is a phrase used to describe a situation where you owe more on your mortgage than your house is worth. With the economic and housing downturn, many more homeowners have found themselves with an underwater mortgage and have been struggling to refinance.
What Is HARP?
According to a recent article in the Washington Post, to be eligible for HARP you must meet the following criteria:
…you must have a mortgage owned or guaranteed by Fannie Mae or Freddie Mac, sold to those agencies on or before May 31, 2009. The current loan-to-value ratio on the mortgage must be greater than 80 percent. Having a mortgage that was previously refinanced under the program disqualifies you from the program. Borrowers cannot not have missed any mortgage payments in the past six months and cannot have had more than one missed payment in the past 12 months.
If you are unsure if your mortgage is owned or guaranteed by Freddie Mac or Fannie Mae, please contact me and I can help you determine whether or not you may qualify for HARP.
For the full FHFA press release, download the PDF here.
HARP Refinancing in Seattle
If you’d like to find out more about refinancing through HARP, please contact me and I will be happy to walk you through the necessary steps to see if you may qualify. I’ve been working as a mortgage professional in the Seattle area for many years, and I would love to help you and your family refinance your home.
The program is scheduled to go into effect on December 1st–with more information due out November 15th–so be sure to contact me soon!
