Have you ever wandered about the Obama Refinance program for real estate?If you are a home owner you should probably prick up your ears right about now. Although the term has been haphazardly thrown around home owners, very few people actually understand what it is really about. We will attempt to shed some light on the problem with a brief description of the plan. Its official name is the Home Affordable Program, hereafter referred to as HARP.
What is it?
Its most beneficial feature is that it lets you refinance your property, even if you actually owe in debt a greater sum that what your property is actually worth. This state is known as underwater ownership. The actual amount which is permitted by those dealing in HARP is roughly about twice the value of your property. This is a novel new feature which has not been in any previous system. However, if you exist in some sort of middle area where you have some equity but not enough to do the refinancing, you may still qualify. So you are roughly talking an 81% or more loan to value can qualify you got the loan.
How Do I Qualify?
In order to put yourself on the waiting list for this real estate system, you must make sure that the loan is owned by Fannie Mae of Freddie Mac. Additionally, the loan must be shut down before a certain time period. Additionally, you do not use the loan twice on the same property and the payments must be made within one month of the last year’s due date. You also require a decent credit score. There are a lot of requirements so make sure you cross the Ts and dot the Is.
What If My Mortgage is owned by someone else?
In the future there will be a plan put in place for those home-owners who have their mortgages elsewhere. There is a lot of current frustration with this issue because it has been continuously rejected by the government and refined and rejected again. It could be a while before an agreement is reached.
Possible Future Change:
With the onset of HARP 2.0, which got rid of the LTV cap, and any need for an appraisal has helped out an awful lot of home-owners in recent times. Any future version may allow for any loan to qualify and for previous users to use HARP again. Any cut-off dates could also be done away with and the requirements on your credit score would be lowered.
Well there you go real estate owners. HARP is a method which could prove highly beneficial for underwater home-owners. If you think you may be eligible it is worthwhile having a look to see if you are eligible. There is a high chance that you may be. So good luck with all of your real estate ambitions.