The Housing Affordable Refinance Program (HARP), according to harp-mortgage.com, is set up in a way “to help struggling homeowners obtain ‘more affordable’ and ‘stable’ mortgages through refinancing.”
Through HARP 3.0, legislators are hoping to reach even more homeowners nationwide that HARP and HARP 2.0 were able to reach. HARP 3.0 is designed to assist homeowners with non-Fannie Mae or Freddie Mac backed loans by “streamlining the refinancing process, eliminating appraisals, and loan-to-value requirements. It also allows for those with mortgages that are not backed by the government to obtain a refinance as long as they are employed, have fair credit, and are up to date on their mortgage” as the website also states.
Those homeowners able to qualify for assistance in the HARP program are those who:
• Have not missed a payment in the last 6 months, or no more than one missed payment in the previous 6 months
• Have a current FICO score of 580
• Have a current home value that does not exceed the “area median values” determined by the FHA
• Occupy the single family residence to be refinanced
It is the hope of the Obama Administration that the HARP program will save roughly 4-5 million homeowners an average of $250 a month.