Underwater mortgage borrowers can get financial assistance from the US federal government so they can possibly avoid getting into default. The Home Affordable Refinance Program was set up by the Federal Housing Agency to help troubled home loan borrowers to refinance their current mortgages.
Home Affordable Refinance Program is different from the Home Affordable Modification Program. The two should not be interchanged or mistaken. The former is a refinancing scheme for underwater and troubled mortgage borrowers. The latter is for troubled homeowners who need assistance to prevent any possible foreclosure.
Home Affordable Refinance Program is best for you if you are getting difficulty in getting a possible refinance loan due to your being an underwater mortgage borrower. You should get the necessary help for being a victim of weak home prices due to the onset of a recent housing market burst.
Of course, the Home Affordable Refinance Program comes with specific eligibility and loan qualifications. Not all mortgage borrowers and homeowners can qualify for it. Here are the main requirements and qualifications that should be met:
To be eligible for the Home Affordable Refinance Program, a borrower should have a home loan that is guaranteed or owned by the government-sponsored Freddie Mac or Fannie Mae. If the mortgages were not originally owned by either of the two institutions, those should have been sold to the agencies by May 31, 2009. A borrower can always check if his mortgage is already owned by any of the two agencies. The present loan-to-value ratio of the mortgage should be above 80%. An applicant owning a mortgage that was already refinanced under the Home Affordable Refinance Program will not qualify anymore. Lastly, borrowers should not have missed any home loan payment during the last six months. They should also not have missed more than one payment during the last 12 months.Qualifying mortgage borrowers and homeowners should not hesitate to immediately apply for the program. The Home Affordable Refinance Program is available through selected lenders that have been approved to carry and offer the government-assisted refinances. Mortgage borrowers should not wait because the program is not effective for a long time. It is set to end by December 31, 2013. It is expected to help numerous responsible homeowners to save more than $3,000 per year on their home loans.