The Federal Housing Finance Agency, with Fannie Mae and Freddie Mac have revised the guidelines for the Home Affordable Refinance Program (HARP) in an effort to increase the availability of the program to more homeowners.

This program allows homeowners who owe more than the value of their home to refinance to a new loan with a lower interest rate without having to pay mortgage insurance.

To date, this program has helped less than 900,000 homeowners nationwide since 2009 which has prompted the FHFA to make to following eligibility changes in the effort to expand the effectiveness of the program. Please review the minimum eligibility requirements below and if you meet these requirements and wish to discuss the matter further, contact us at (209) 578-9000.

Minimum HARP Requirements

1/19/2012 Revision

• The property can be a primary residence, investment property or a second home. 

• The loan must be owned by Fannie Mae or Freddie Mac.  Please note that you cannot determine who owns your mortgage based upon who you pay your mortgage payment to.  Loans may be owned by Fannie Mae or Freddie Mac and may be "serviced" by Wells Fargo, Bank of America, GMAC or any other bank.

• The loan must have been made prior to 05/31/2009.  

• Your current loan cannot have mortgage insurance.  Although HAPR guidelines currently allow it, no investors are currently allowing it.

• If you have a second mortgage, the bank who owns your second mortgage must be willing to subordinate to the new first mortgage.

• The last 6 payments must have been made on time with no more than 1 30 day late payment made within the last 12 months.

• ill not are not eligibleThe last 6 payments must have been made on time with no more than 1 30 day late payment made within the last 12 months.

• No maximum loan-to-value (LTV).  The new guidelines eliminate the former maximum LTV.  The previous maximum mortgage amount was 125% of the current market value as determined by an appraisal.  The previous maximum no longer applies.