HARP Program

Harp is the acronym for Making home Affordable Act that was passed by Congress in 2009.  The program was aimed to help homeowners in ARM mortgages and higher rate fixed mortgages with little to no equity refinanced to lower their payment, thus making home more affordable.

On March 19, 2012 HARP 2.0 came out that was amended to help more Americans make their home payments more affordable.  With Real estate prices still falling for 5 straight years, HARP 2.0 was aimed to help clients that are 125% loan to value.

Fannie Mae and Freddie Mac have significantly reducing the maximum amount of the loan-level price adjustments that apply to HARP mortgage loans. Loans that have an LTV over 80% with loans amortization terms less than or equal to 20 years is being reduced to 0.00%.

HARP Requirements

  • Minimum of a 620 middle credit score.
  • Maximum DTI ratio of 45%.
  • Income and asset verification per the selling guide.
  • Loan has to be older than May 31, 2009.

HARP Resources

  • Online HARP Application – Apply online for your HARP loan
  • FNMA Loan Lookup – See if your loan to qualifies for the HARP program.
  • HARP Interest Rates – Review the latest interest rates for HARP.

HARP 2.0 Case Study

Dan and Lara from Macomb, Michigan – Dan and Laura have been in there loan for 8 years.  Like many borrowers today they have paid their bills on time since the got the mortgage but due to the high unemployment across this country and state of MI, they weren’t able to refinance and lower their rate because their home wasn’t worth what they owed after paying for 8 years.  Both of them were really frustrated.  They tried the first HARP plan and it didn’t close due to higher than 105% LTV.  They called Hippo and we consulted them on the new HARP 2.0 plan.

Our approval at HF got them a no appraisal loan from FNMA.  Since it was their second time trying this made a big difference in the initial cost of the loan.  They were at a 30 year fixed at 6.50%.  Their payment was $1,485.36 per month.  We did a new 15 year fixed HARP 2.0 loan at 3.0% and a payment of $1,277.58 per month, saving them $208 per month.  This is a huge savings when you consider that we saved them 7 years or 84 payments of $1,485 ($124,740) and reduced their payment $208 per month.  The total savings for Dan and Laura is $174,620 over the life of the loan or $970.11 in interest per month!  Amazing!

Call us at 877-630-7730 if you would like to be our next success story on the HARP 2.0.