Home Affordable Refinance Program Revision Set To Help 2 Million California Homeowners
On October 24th, President Obama announced his plan to revise the current Home Affordable Mortgage Refinance Program in a way that would reach a far broader scope of American Homeowners.
FOR IMMEDIATE RELEASE
PRLog (Press Release) – Nov 09, 2011 –
The Obama administration has asked that the strict requirements of the current Home Affordable Refinance Program (HARP) be relaxed. This comes after the considerable inability of the current program to help homeowners that owe more on their mortgages than the values of their homes.
Shortcomings of the original HARP Program
Currently the HARP program requires a homeowner be fully income qualified, and not owe more than 125% of the value their current home. A costly appraisal is required, and tax returns, paystubs, and many other documents must be reviewed for approval. With job numbers at record lows, self employed consumers showing less income than what they actually make, and home values at a fraction of what they were a few years ago, this initial attempt to aid homeowners has fallen far short of what was hoped for.
Click To See If You’re Eligible for HARP
Official changes to the program will not be released until November 15th, but some details of what is expected have been released.
It is believed that the revised program will no longer contain a 125% limit. Because there is no limit on the value of the home, it is expected that an appraisal will not be needed to qualify.
Replacing restrictive income guidelines for qualifying is the simple requirement that consumers have paid their mortgages on time for the past 6 months, and have no more than one late payment in the last 12 months.
The program is available for owner occupied properties, investment properties, as well as second homes.
With rates in the low 4’s, it is expected that 2 million homeowners in California could benefit from the revised Home Affordable Refinance Program, or HARP 2.0.