Minneapolis, MN: The Federal Housing Finance Agency (FHFA) has directed Fannie Mae and Freddie Mac to extend the Home Affordable Refinance Program (HARP 2.0) by two years. The program was to expire at the end of 2013, but will NOW expire December 31, 2015.
The program is being extended so more underwater homeowners can benefit from refinancing to today’s low mortgage interest rates. Already, some 2 million plus homeowners have successfully refinanced their homes using the HARP 2 refinance program.
FHHA also announced they will be launching a nationwide campaign to inform homeowners about HARP refinances, and eligibility requirements.
To be eligible for a HARP refinance homeowners must meet the following basic criteria:
- The loan must be owned or guaranteed by Fannie Mae or Freddie Mac (Check and see for free)
- The mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.
- The current loan-to-value (LTV) ratio must be greater than 80 percent.
- The borrower must be current on their mortgage payments with no late payments in the last six months and no more than one late payment in the last 12 months.