HARP Refinance Lightens Up on Credit

Fannie Mae

HARP Upgrade!

There is undoubtedly great news regarding Fannie Mae’s HARP refinance program!  In late 2013, refinancing using the HARP program with a prior foreclosure, bankruptcy or short sale was simplified!   Additionally, there are several beneficial upgrades to the HARP program making it easier for eligible borrowers to qualify.   HARP is a refinance program that allows eligible borrowers to refinance if they are upside down or do not have 20% equity in their homes.

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HARP Improvements:

1. Waiting time-frames for previous bankruptcy, foreclosure or short sales WAIVED on HARP Refinances!

Homeowners with a prior bankruptcy, foreclosure or short sale no longer have to wait to use the HARP refinance program.  Previously, homeowners had to wait for years following derogatory events.  Specifically, the mandatory waiting period related to each derogatory event.

2. The HARP eligibility date is NO LONGER a loan’s Fannie Mae delivery date.

Before the change, loans had to have been delivered to Fannie Mae by May 31, 2009 for HARP eligibility.  The new requirement is to have a “NOTE DATE”  (the new loan closing date) on or before May 31, 2009.  This provides borrowers the ability to take advantage of a HARP refinance.  The difference between a note date and a delivery date can be several days to several weeks!

3. Better Address and Social Security mapping are now available to track eligible HARP homeowners.

Before Fannie Mae’s recent HARP improvements, many homeowners loans serviced by Fannie Mae came up as “ineligible for HARP”.  This was caused by Fannie Mae’s inaccurate tracking system.  Now, Fannie Mae has improved and enhanced their address and social security mapping system to better identify eligible HARP homeowners.

These 3 improvements allows more homeowners to take advantage of the HARP refinance program even if they do not have 20% equity.

To determine if your home is eligible for HARP  please call us or check out the following link:

By Jeremy House

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