Earlier this year, the Federal Housing Finance Agency announced that it will extend the federal refinancing initiative, The Home Affordable Refinance Program (HARP) for another two years. It was supposed to expire at the end of 2013 but will now be available until the end of December 2015. For some Raleigh, Wake Forest, Cary and Surrounding Wake County residents, HARP has been a huge help in keeping their home these past few years. The Raleigh real estate market is bouncing back but there is still need for specialized programs such as HARP.
What is HARP?
HARP or Home Affordable Refinance Program was established in April 2009 in response to homeowners wanting to refinance their homes but unfortunately, did not have enough equity due to the down market.
According to the FHFA Press Release from April, HARP is uniquely designed to allow borrowers who owe more than their home is worth the opportunity to refinance their mortgage. Extending the program will continue to provide borrowers opportunities to refinance, give clear guidance to lenders and reduce risk for Fannie Mae, Freddie Mac and taxpayers.
“More than 2 million homeowners have refinanced through HARP, proving it a useful tool for reducing risk,” said FHFA Acting Director Edward J. DeMarco. “We are extending the program so more underwater borrowers can benefit from lower interest rates.”
Who Is Eligible in Wake County?
The FHFA lists eligibility guidelines for consumers on their website:
- The loan must be owned or guaranteed by Fannie Mae or Freddie Mac.
- The mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.
- The mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009.
- The borrower must be current on their mortgage payments with no late payments in the last size months and no more than one late payment in the last 12 months.
Here at Linda Craft & Team, we believe in working hard for our clients so they can live/continue to live in their dream home. As a Certified Distressed Property Expert and REALTOR in Wake County, Linda has the expertise necessary to save your credit, relieve the uncertainty and guide you step by step through the process.
If you ever have any questions regarding purchasing a home and the loan process, please do not hesitate to contact us at 919.235.0007. We are here for you!