About HARP 2.0
What is the HARP 2.0 Refinance Loan Program?
Before we dive into the new HARP 2.0, let’s take a little journey back to the creation of the original HARP 1.0. The word HARP is actually an acronym for the Home Affordable Refinance Program. After the housing bubble burst, a lot of homeowners were stuck with making their house payments on a home that was not worth what they owed. This is commonly referred to as upside-down or underwater on their mortgage.
As a way to help these homeowners stay in their homes and reduce their interest rate, in March 2009 the Federal Housing Finance Agency set up the original HARP 1.0 to help underwater and near-underwater homeowners refinance their mortgages. Out the gate, it was designed to help homeowners with a loan-to-value ratio exceeding 80% to take advantage and refinance to a lower rate, shorter term loan, or to get out of an adjustable rate without also paying private mortgage insurance (PMI). This program originally only helped those homeowners with an LTV of 105% or less. At that time, not a lot of people could take advantage of this program.
In the later part of 2009, the Federal Housing Finance Agency extended the HARP 1.0 to include those with an LTV of up to 125%. This number helped a few more people qualify. An example would be if you owed $125K balance on your mortgage, but your home would only appraise for $100K, then you could refinance (if qualified) to a lower rate and/or program.
Then in the Fall of 2011, the Federal Housing Finance Agency took probably the most aggressive step in helping homeowners by creating the new HARP 2.0. There are a lot of detailed changes, but the key one is that there would no longer be any limit on how much you were upside-down on your mortgage. This change should help a lot of homeowners – especially those in what is commonly referred to as the “sand states” (Arizona, California, Nevada and Florida) whom most probably owe more than the 125% and haven’t been able to take advantage of these historic low rates. Until now!
If you haven’t done it already, download the Step-by-Step Guide – it is very helpful! Click here: HARP GUIDE
Also, make sure you sign up for our Free Weekly Online workshop on the HARP 2.0. Just click here: Workshop
And as always, the Rider Group at CMG Mortgage Inc wants to thank you for visiting our site. We look forward to hearing form you and want you to know that we are here to help answer any of your questions. And if you think you are ready to start the process, then just click on the “Apply Now” tab and fill out as much as you can. If you don’t know something, then leave it blank and one of our team members will follow up with you.