HARP Loans Require a Benefit to the Homeowner (Video)
By: Rosemary Rugnetta | January 21st, 2013
HARP loans, the Home Affordable Refinance Program, require that a benefit be recognized in order for the homeowner to use this refinance program. Similar to the FHA streamline program, HARP is designed to improve a borrowers financial position and lessen their burden.
In an effort to bring homeowners out of being underwater at a faster pace, many HARP refinances are for shorter terms than the traditional 30 year loan. The HARP program requires that borrowers see a benefit of either lower mortgage payments or a reduction in term in order to meet approval. This requirement makes sure that every homeowner who obtains a HARP refi will see a benefit. The video further explains how HARP accomplishes this and the guidelines it follows. While eligibility requires that the homeowner have a loan that was sold to Fannie Mae or Freddie Mac prior to June 1, 2009, the guidelines make sure that the HARP loan is the right decision for both the homeowner and the GSEs.
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