HARP 2.0 is a federal program that was announced in October by President Obama. It is designed for homeowners who purchased their homes during the housing bubble, but now find their mortgage underwater. Currently those people are unable to refinancing under existing programs due to the depreciation in their homes value. This is significant because up to half of Arizona mortgages are underwater.
The original HARP program which allowed a home owner to borrow up to 125% of their homes value was unsuccessful because home prices kept falling after the guidelines were set. A big difference in HARP 2.0 is that loan-to-value limit has been removed. This means the program will be available to many more people.
There are some qualification requirements. For instance, your mortgage must be owned by Fannie or Freddie. If you aren’t sure, you can look it up here:
You must also be able to show you can afford your new mortgage should it be refinanced.
The full details of HARP 2.0 are still in the works, but we anticipate the program to be fully rolled out in March of this year. I will you informed of new details as I receive them on this blog, and through our email list.
Ultimately the goal of the program is to reduce your underwater mortgage payment to a more affordable level. They want to do everything they can to avoid foreclosures, so if your home isn’t worth what you owe, you should consider it.
Please call me (Cal – 602.279.7777 x101) or email me if you have any questions.