Borrowers can find more information about both the HARP, HAMP & Making Home Affordable programs by contacting their local lender for details and specific qualifications. Click here for FAQs on the Making Home Affordable program or visit www.makinghomesaffordable.gov.
Home Affordable Refinance Program (HARP)
- Owner occupant of a one to four-unit home
- Loan is owned or guaranteed by Fannie/Freddie
- Conforming loan (owe less than $729,000)
- Current with mortgage
- Amount owed on 1st mortgage does not exceed 125% of current market value of home
- Current mortgage payment greater than 31% of monthly gross income (proof of financial hardship)
- Proof you can afford "new" refinanced mortgage payments
- Refinance improves long-term affordability of mortgage
- Extended to June 2011
Home Affordable Modification Program (HAMP)
- For mortgages not owned or guaranteed by Fannie/Freddie
- Owner occupant of a one to four-unit home
- Conforming loan (owe less than $729,000 on single unit)
- Current mortgage payment greater than 31% of monthly gross income (proof of financial hardship)
- Don't need to be behind on mortgage payments to qualify, but will accept those who are behind on mortgage payments
- Treasury is providing incentives to lower interest rates as low as 2% (interest rate will only go low enough to make mortgage payment equal to 31% of homeowner's monthly gross income
- Loan term could be extended to 40 years
- Potential forbearance
- Accepting HAMP may affect credit
- Extended to December 2012
More information on the foreclosure process may be found by clicking here.
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