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HARP Loan Program: How Did It Work?

This excerpt discusses the fundamentals of Home Affordable Refinancing Program (HARP) and its current alternatives.

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HARP Loan Program: How Did It Work?

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  1. HARP Loan Program: How Did It Work?

  2. What Is the HARP Loan Program? • The HARP (Home Affordable Refinancing Program) loan program was a government initiative established in April 2009 under the FHFA (Federal Housing Finance Agency) in response to the 2007-2008 financial crisis. Its purpose was to help homeowners refinance loans on properties that were worth less than their outstanding mortgage.

  3. What Were the Qualifying Criteria for a HARP Loan? • A basic requirement was a mortgage owned or guaranteed by Freddie Mac or Fannie Mae, closed on or before May 31, 2009. • The original loan must have had an LTV ratio of at least 80%. • Borrowers needed to have a minimum credit score of 660.

  4. What Replaced the HARP Loan Program? • Here are two alternatives to HARP mortgage refinancing. • Flex Modification: Freddie Mac and Fannie Mae offer a Flex Modification program for existing loans with past-due payments of over 60 days. • Freddie Mac High LTV Refinance: Freddie Mac offers borrowers a refinance with a 95% loan-to-value ratio (LTV) for a one-unit or single-family home.

  5. No Interest (Riba-Free) Contrary to popular belief, Lorem Ipsum is not simply random text. It has roots in a piece of classical Latin literature from 45 BC, making it over 2000 years old. How Did the HARP Loan Program Work? • HARP mortgage financing allowed borrowers with mortgage loan balances that exceeded their property values to refinance their loans at a lower interest rate. This program began on April 1, 2009, and ended on December 31, 2018.

  6. What Does It Mean When a Mortgage Is Underwater? • An underwater mortgage is where the loan balance exceeds the value of the home securing the loan as collateral. Borrowers can go underwater if the property value drops or the borrower withdraws too much of the property’s equity via a home equity loan, home equity line of credit, or cash-out refinance.

  7. Thank You Visit: www.altfn.com

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