President Obama’s Home Affordable Refinance Program (HARP) is aimed at providing loans for mortgage refinance for bad credit borrowers, who are at-risk of losing their precious homes to their creditors, and faced with financial hardships. But to derive the benefits of the federal plan, it is imperative for a borrower to satisfy the eligibility requirements outlined by the federal guidelines. That makes it necessary for a refinance loan applicant to have proper information about the qualification criteria and application process for a federal home mortgage refinance loan.
- Reduce your monthly payments
- Lower your net interest rates
- Lower your loan balance
- Waive negatively accrued interest
- Avail extensions on payments
- No Closing Cost
- Poor Credit OK
President Obama Making Home Affordable Program (HARP) is aimed at providing home mortgage refinance loans to struggling homeowners with a bad credit, who are at-risk of losing their precious homes to their creditors, and faced with financial hardships. Typically, by refinancing their existing upside down home mortgages, borrowers could continue staying in their houses and save a lot of money in the long run. The federal program thus intends to stabilize the plunging housing market and assist millions of Americans to reduce their monthly mortgage payments considerably while saving their properties from foreclosures. But to derive the benefits of the government program, it is imperative for a borrower to satisfy the eligibility requirements outlined by the federal guidelines. That makes it necessary for a refinance or Loan Modification applicant to have proper information about the qualification criteria and application process for a home mortgage or cash out refinance loan.
Eligibility requirements for the HARP:
To qualify for the federal mortgage refinance plan, borrowers need to meet the below mentioned specifications
- The existing home mortgage loans should have been approved either on or before 1st January, 2009.
- The current mortgages must be owned or insured by Freddie Mac or Fannie Mae.
- . It is important for a refinance loan applicant to be regular on the mortgage payments for the last 12 months. In case there is a default in paying the monthly mortgage installments, such a period should not have exceeded 30 days.
- Households are required to furnish proof of enough monthly income to pay mortgage payments on the new loan.
- The value of the first mortgage should not be more than 105% of the home’s current market price.
If you satisfy the above conditions, you are entitled to get much lower rates of interest and favorable new loan repayment terms on your home refinance with bad credit. In addition, your monthly mortgage installments could be considerably reduced and could be highly affordable.
How to apply for a mortgage refinance loan under HARP?
The following list of documents needs to be submitted along with the home mortgage refinance loan application to enhance your chances of getting an approval for a federal making home affordable program.
- Information on gross monthly income.
- Copies of 2 recent pay stubs.
- Copy of preceding year’s income tax returns.
- Details of assets owned.
- Information pertaining to second mortgages, if any.
- Details of all outstanding debts and account balances.
If you fail to qualify for HARP, you could still refinance your existing home mortgage loans. There are plenty of online mortgage loan lenders who offer specialized no credit check mortgage refinance loans. Nevertheless, an expert guidance is required when considering applying for home affordable modification program which could ensure that the solution that you are out to secure actually caters to your financial needs and requirements. It is thereby recommended to avail professional online help from reputed service providers like LoansStore.
