Home Assistance Refinance Program - HARP
The HARP program, or Home Assistance Refinance Program is in full effect boyeeeeeee. Please excuse me for going Flavor Flav on you, but I'm excited about this program designed to help homeowners in difficulty.
For any of you owners who may be in difficulty - as long as you are current on your mortgage, you may be eligible for this program even if your house has dropped in value. This financing goes to 105% LTV or loan to value.
Gail Cahaney, Mortgage Consultant at Thoroughbred Mortgage explains how it works. "Let's say you have someone with 90% financing and there house has dropped 15% - they may still be eligible. Specific example: Bought house in 2007 and paid $500,000. They have a first for $400,000 and a second for $75,000 - so they started off at 95% financing. (not all unusual in 2007) They wanted to refinance and so had an appraisal and their house appraised for $455,000. They now have financing over 100% of what their house appraised at - that person is eligible," explains Gail.
You must go back to your original lender for loan for help. If you need more information...AskRey.