All About the HARP 3.0 Refinance Program and Possibilities in a Nutshell

Who All Might Be Able to Apply for The Home Affordable Refinance Program 3.0?

Although at this juncture, one can only guess whether the HARP 3 Program will ever be a reality, chances is that the following borrower types may actually benefit if implemented.

• Self-employed professionals whose original mortgages are stated income loans and are in a position to prove their annual incomes by providing copies 3 years’ of federal income tax returns.
• “Prime” borrowers who took advantage of lower interest rates at low refinancing fees previously in contrast to conventional home refinancing loans.
• Homeowners living in “high cost” areas having original jumbo home mortgages with amounts ranging from $ 417,000 to $ 625,000.
• Must not bankruptcy, short sales or home foreclosure record in past 36 months
• Daily wage earners who made use of stated income or stated asset mortgages originally for the sake of convenience.
• Subprime borrowers who have paid back their original mortgages and can give proof that they still have sufficient income and assets to refinance their homes to lower rates.
• Borrowers whose FICO scores have shown improvements ever since they got their original home mortgages and now intend to take advantage of lower interest rates to reduce payments.
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HARP 3.0 Mortgage Refinance Changes May Benefit More Homeowners

It is being speculated that the HARP 3 refinance plan will reach out to even those borrowers who have not been benefitted with any of the previous federal government housing financial assistance programs. For ensuring that, rules of the HAMP 2.0 may be changed to accommodate the following categories of borrowers.

• Past jumbo mortgages may no longer be considered jumbo.
• Daily wage earners with stated income or asset mortgages can apply.
• Guidelines will probably make things easier for borrowers with subprime credit.
• Borrowers with subprime mortgages whose credit ratings have improved could be eligible.
• Homeowners who have good credit but have a previous subprime mortgage loan with lower interest rates.

What The HARP 3.0 Mortgage Program For Refinancing Homes May Do?

For enabling more number of financially distressed homeowners to qualify for the HARP benefits, the Obama administration had relaxed eligibility guidelines. Accordingly, for the HARP 2.0, as it is popularly known, LTV restrictions were waived and qualifiers like income proof, assets as well as minimum credit criteria were done away with. In addition, to be approved for HARP 2.0 program, even home appraisals were not required.

The federal HARP 2.0 schedule is still in action and qualifying guidelines are as follows:

• Even those with less than 20% home equity can refinance their homes at lower rates.
• Borrowers must be current on their monthly mortgage debt payments for the last 6 months.
• Applicant’s existing home mortgage loan must have originated on or before 31 May 2009.
• The mortgage under consideration has to be owned or guaranteed by Fannie Mae or Freddie Mac.

How it works