Since its introduction back in 2009, the government-insured Home Affordable Refinance Program (HARP) has assisted homeowners by the millions. The HARP home loan has allowed mortgage payers to save hundreds of dollars each month. These savings enabled families to funnel funds into other areas of their financial responsibilities, such as education and recreation.
Now, almost a decade in existence, the HARP loan is seeing noteworthy updates. These updates are designed to make the program more accessible to a broader market and to expand HARP loan beneficiaries.
The newest iteration of the HARP loan allows for a more lenient approval of applications. It is made possible through these updates:
- HARP loans are no longer limited to a loan-to-value ratio of 125%. It means you can now apply for this loan regardless of how far your property has depreciated.
- HARP loan application no longer requires homeowners to be appraised or for their loan to be underwritten. Essentially, the program has a more streamlined application process.
- For those who decide to refinance into shorter loan terms, risk-based fees will either be modified or eliminated.
- Paperwork and other requirements may be waived by lenders such as Primary Residential Mortgage, Inc., especially in instances where applicants hold a minimum of 12 months of reserved mortgage payments.
Refinancing via HARP does not require borrowers to work with the same lender from which they had acquired their original loan. It opens up more options for the borrower.
HARP 2.0 Stats
Since these updates’ first introduction, 400,000 homeowners have decided to refinance their homes via the HARP loan program. It puts the number of HARP beneficiaries to 1.5 million since its inception. These numbers are a testament to the program’s value and credibility.
If you are currently looking for ways to make the most of your property and to adjust your mortgage plan, HARP loan could be worth your while. You may want to consult with an expert to know for sure.