The third edition of the Home Affordable Refinance Program (HARP) is rumored to be just around the corner. The most recent program is called HARP 3.0 and dubbed #MyRefi by the government. A lot of questions and speculations surround the new would-be government program, but the most popular question is, “What is HARP 3.0?”
Image courtesy usnews.com
HARP is a government-backed program that helps homeowners refinance their current homes by waiving some (or all) loan-to-value, proof of income or asset, credit score, and/or home appraisal requirements. Requirements have changed throughout the several years that HARP has been around, but the bottom line is that HARP is meant to help homeowners who are in good standing with their home loans. Many “good homeowners” who are current on their mortgage payments are seeing their neighbors default on and break contracts for their underwater home loans, allowing them to bail out of a sticky loan situation. HARP aims to provide some financial relief for those who are “stuck” in a home that’s not worth near the value that is owed on it, without the homeowner defaulting on their loan for financial relief.
While the previous program, HARP 2.0, focused on homeowners whose loans were backed by Fannie Mae or Freddie Mac, HARP 3.0 might target homeowners who have loans backed by other financial companies. HARP 3.0 could also help homeowners with jumbo mortgages, or mortgages that are generated for more than $625,500 and not initially able to be backed by Fannie Mae or Freddie Mac. Homeowners that are currently in a mortgage for above this amount but own a home that holds a lower value because of the current market would be eligible for some relief with HARP 3.0.
Though HARP 3.0 isn’t on the books yet, it is expected to be coming soon. To keep up with the latest on HARP 3.0, we’ll be keeping an eye on these great reporting websites and urge you to do the same:
Please don’t hesitate to contact us with any questions you have about HARP. We are always happy to help you with any home or mortgage concerns.