Home Affordable Refinance Program (HARP) – Qualify for Mortgage Loans for People with Bad Credit

HARP or Home Affordable Refinance Program is basically a streamlined refinance program meant to assist the homeowners, who are unable to refinance their homes because of a decline in the value of a home. 

The home affordable refinance programs mainly help the homeowners to refinance the mortgage by allowing to transfer their present mortgage insurance to the newly refinance loan. Besides, this program also allows the homeowners without mortgage insurance on the previous loan to refinance the mortgage without getting new insurance coverage. So, even if the value of a home declines, refinancing through HARP can be really helpful to lower the payments or to change to a more stable type of loan.

One can be eligible for HARP loan in case the person is present on the mortgage at the refinancing period and has had no delinquencies in the last six months. But, one can be eligible even in case one has had a delinquency within last 1 year.

So, if you are planning to consider home affordable refinance plan HARP, here are some details that you must be aware of. Have a look:

Basic eligibility criteria for getting home affordable refinance program harp loans:

• The loan has to be guaranteed or owned by Freddie Mac or Fannie Mac

• In this type of refinance, the current loan to value ratio or LTV should be more than 80% and not higher than 200%

• During the time of refinance, the loan borrower has to be current on the mortgage payments

• One can only qualify for a HARP even in case his home has declined in value

• Good payment history a must to get this refinance. The borrowers are allowed just one late payment in the past one year as long as this has not taken place in the six months before refinance

• With this loan, one can lower the monthly payment

• If one presently has an adjustable rate mortgage, therefore the loan borrower will be able to change to a more stable loan of fixed rate

To get more information on refinance mortgage loans for people with bad credit, you can consider visiting MORTGAGEREFINANC101.COM