HARP or the Home Affordable Refinance Program is a mortgage refinance program that is backed by the government. It offers relief to plenty of homeowners struggling to repay their mortgage payments because of financial difficulties.
If you are considering applying for HARP, note that it would only be available up to September 30th this year. To help you decide, below are some of the most common questions and answers about HARP.
I have zero home equity, could I still apply for HARP?
Absolutely, yes. HARP is known as an underwater home loan program because regardless of how “underwater” you are on your home loan, you could still apply for HARP.
I already have a second home loan, could I still refinance with HARP?
Definitely, yes. However, you will not be allowed to combine both of your home loans into a cash-out refinance mortgage.
To refinance your first home loan via HARP home loans, but keep your second home loan unaltered, the lender of your second mortgage would have to subordinate the home loan, which means that your lender must allow you to replace the title’s existing first lien.
My mortgage already has PMI or private mortgage insurance, could I still utilize HARP?
Yes, you can. This rule applies to mortgages with BPMI or borrower paid mortgage insurance and LPMI or lender paid mortgage insurance. But it could be tough to look for lenders that offer private mortgage insurance program.
My mortgage lender is not HARP-approved; could I go to another lender?
Absolutely. While not all lenders offer the HARP home loan, you could reach out to lenders in your area to find out which ones do.
A lender previously turned down my HARP application. Could I possibly reapply?
Yes, you certainly can. Lenders that offer HARP typically utilize in-house variations of government mandated HARP policies. These are investor overlays, and these vary from one lender to another. In short, you just have to find another lender that offers HARP.
Bottom line, it does not matter if you have an underwater mortgage or have two mortgages; as long as you satisfy eligibility requirements for the HARP program, you could try to apply for it. Speak to you are a HARP-approved lender to learn more.