Under the HARP program or Home Affordable Refinance program, Freddie Mac has two options for homeowners who have been making on time mortgage payments but have not been able to refinance their homes, due to low property values.
The two programs have higher loan to value ratios that increase the probability of home owners being able to refinance.
Let's take a closer look at some of the qualifications to refinance under these two programs: Relief Refinance Mortgages Open Access Requires full underwriting by submitting mortgages for assessment through Loan Prospector, and may be originated by any Freddie Mac-approved seller and servicer.
Some of the mortgage refinance requirements are: Be a first-lien, conventional mortgage currently owned by Fannie or Freddie.
If a Freddie Mac loan, settlement date must be on or before May 31, 2009.
-At least seasoned for three months.
If the mortgage being refinanced was sold to Freddie Mac with mortgage insurance, it is eligible for refinancing.
If the mortgage being refinanced was sold to Freddie Mac with recourse and indemnification, or other credit enhancements defined in Guide Chapter B24, it is ineligible to be refinanced as a Relief Your mortgage payment history be no more than 30-day late the past 12 months.
If mortgage is less than 12 months old, then no 30-day or more delinquencies since the note date.
So what are some of the benefits? The Relief Refinance Mortgage must result in at least one of the following: •Reduction in the interest rate of the first lien mortgage, •Replacement of an ARM, Initial Interest® Mortgage (or any mortgage with an interest-only period) or a balloon/reset mortgage with a fixed-rate, fully amortizing mortgage, or •Reduction in the amortization term of the first lien mortgage.