Can’t Afford Your Mortgage in Kansas City? Are You Eligible for HARP?

We market a lot to buy houses and from time to time we will get a seller who just can’t afford their mortgage, so they want to sell.  But they owe more on the home that we would be able to pay and still make a profit.

So we have to ask

If you can’t afford your mortgage in the Kansas City metro, or anywhere for that matter, have you checked to see if you might be eligible for a HARP modification?

What is HARP?

HARP – the Home Affordable Refinance Program – was introduced in 2009 by FHFA as part of Making Home Affordable®. The program allows homeowners who have seen a drop in their home value and are underwater refinance into better mortgage terms.

Through HARP, you can get a lower interest rate, get a shorter loan term or change from an adjustable to a fixed-rate mortgage. HARP has seen significant enhancements since its launch and guidelines have been streamlined, making it easier for people to qualify.

If you are current on your mortgage, have a mortgage that is owned by Fannie Mae orFreddie Mac and owe as much or more than your home is currently worth, you may be eligible for HARP refinancing.

The end date to get a refinance through HARP has been extended to December 2018.

Find out if you are eligible

You may qualify for HARP if you meet these requirements:

  • You are current on your mortgage, with no 30-day+ late payments in the last six months and no more than one in the past 12 months.
  • Your home is your primary residence, a 1-unit second home or a 1- to 4-unitinvestment property.
  • Your loan is owned by Freddie Mac or Fannie Mae. Use the Loan Look-up Tools below if you are unsure.
  • Your loan was originated on or before May 31, 2009. By using the Loan Look-up Tools below, this date will be made available to you.
  • Your current loan-to-value (LTV) ratio must be greater than 80%. Calculate your LTV ratio with this tool.

Get started

If you are eligible to refinance your mortgage through HARP, you’ll go through an application, approval and closing process (similar to when you got your original mortgage). A HARP lender will work with you through every step, and will help determine if HARP meets your specific needs. Outlined below are three steps to get you started.

STEP 1: Gather your financial information.
Make sure you have your basic financial and loan information on hand when you call your mortgage company. You’ll need:

  • Your mortgage statements, including information on a second mortgage (if applicable); and
  • Your income details (paystub or income tax return).

STEP 2: Contact your mortgage company
Ask if they are an approved HARP lender. Since you are a current customer, your lender already has your loan file. However, they will need you to provide the information necessary to verify your current source of your income.

OR

Contact a HARP lender.

 

Find a list of approved HARP lenders at one of these pages. Tell them you are interested in refinancing, and you want to see if you qualify for HARP.

Fannie Mae Loans: List of Approved Vendors
Freddie Mac Loans: List of Approved Vendors

STEP 3: Go through the application, approval and closing process.
If your lender determines that you do qualify for HARP, they will guide you through the application, approval and closing process.

For more information on HARP visit HARP.gov

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