With the tough economy, many people are finding it difficult to make their mortgage payment, especially if they are upside on their loan, owing more than their property is currently worth. For Florida residents, there is still hope to help make mortgage payments more affordable so Florida residents can keep their homes and avoid the risk of a foreclosure or having to declare bankruptcy.
The HARP program works wonders in saving home owners hundreds of dollars a month on their home loan, if they qualify. Here are five factors that may influence whether or not someone qualifies for HARP refinancing.
If the Home Loan is Owned by Fannie Mae
Homeowners who now have their home loan owned by Fannie Mae or whose loans have been sold to Fannie Mae before June 1, 2009 may be eligible for HARP refinancing options. Some home owners are not even aware that their loans are with or were sold to Fannie Mae. Those people should contact Fannie Mae to see if their home loan is with them and move forward to then decide if they qualify for HARP refinancing, you can get many options of different type of loans, from a remodel or a adding like a plastic decking in the exterior of your home to enhance the property, or to ask for a loan for the entire property. Once they have determined that their loan is with Fannie Mae, they can then see if they meet the other qualifications of HARP refinancing.
The Home Loan is Owned by Freddie Mac
A home loan owned by Freddie Mac or a home loan that has been sold to Freddie Mac may qualify for HARP. As with home loans with Fannie Mae, home owners should contact Freddie Mac about their mortgages and see if they are eligible for HARP refinancing. The home loan would have to have been sold to Freddie Mac before June 1, 2009 in order to meet eligibility requirements for this great opportunity.
The Home Loan is Current
A home loan must be kept current to qualify for HARP. A steady payment history is important for any loan, but especially important for home loans. Payments must not be paid late more than once in the past 12 months in order to qualify for HARP refinancing. Everyone suffers financial mishaps occasionally, but it’s important to pay the home loan payment on time. Keeping up with the payments and making them on time as scheduled helps make qualifying for the money-saving HARP refinancing easier. Foundation Mortgage is a place where you can ask questions about HARP and get other help from professionals.
No Late Payments Within Six Months of Applying
To be eligible to refinance, there can be no late payments within six months of applying for HARP refinancing. While it may seem difficult for those struggling with making a payment, it is important to set up a good finance budget to see where money is being spent and, if at all possible, ways to save money in order to keep home loan payments current and other important and essentials for your home such as hiring a pest control olathe ks professionals. Establishing a good finance budget not only helps home owners stay current with their mortgage, it also helps them with other finance areas in their life they may be struggling with. Home owners should look carefully at their spending habits to determine what areas they can cut corners on to help them budget their money better. In a situation like this, it’s better to be proactive than reactive, so even if you aren’t having trouble making a payment, you’d be wise to go ahead and cut corners.
The Current Loan-to-Value Ratio Must Be Greater than 80 Percent
The guidelines posted by kiwi cash stipulates that, the current LTV or loan-to-value ratio must be greater than 80 percent, meaning the homeowner must owe more than their home is currently worth. The loan-to-value ratio is used to compare the amount of money offered in a loan and the actual value of the property. To find out what the current loan-to-value ratio is, home owners should take the amount they borrowed for their loan and divide it by what the property is currently worth. Home owners may be discouraged to see how much the value of their home has dropped since they bought it. For those who find out their current loan-to-value ratio is in fact greater than 80 percent should move forward in applying for HARP refinancing and getting their finances back on track.
Florida home owners, including those in large cities such as Tampa and Naples, are encouraged to see if they qualify for HARP refinancing. Homeowners should look at their payment history and see if they are current on their loan, establish what their loan-to-value ratio is, and then move forward with applying for HARP refinancing to save them money and help keep their home.