Harp Loan-what is it and do you qualify
There is a lot of advertisements stirring up regarding “the president’s loan” or “Obama Loan” and how it is going away soon. If you are wondering what they are referring to, it is the HARP loan. What is it and do you qualify?
The HARP Loan was introduced in March 2009 and was created to help homeowners with little or no equity to refinance into a more affordable mortgage. A HARP loan is to help homeowners with loan-to-value (LTV) ratios equal to or greater than 80 percent.
The ads for this program are very appealing. “Lower your rate”, “Lower your monthly payment”, “Program Ending, get in quick”, etc. It is easy to be curious about it and if you qualify. My hopes are that this information helps clear things up for you and better understand the program.
This program is not for everyone. It is not a special “President’s loan” with low-interest rates. In fact, there are very few homeowners in the state of Colorado who would qualify. Colorado’s home values continuing to increase, so there are very few who have a mortgage owned by Fannie Mae or Freddie Mac, originated on or before May 31, 2009, and who have little to no equity in their home. Here is a very informative FAQ sheet if you would like to learn more.
If you have any questions please give us a call.