It has to be an election year. Without getting into the politics of it all, it seems the current administration has decided to help out existing homeowners. While the costs to purchase a home are increasing for both conventional and FHA backed loans, those hoping to refinance will be getting a couple breaks.
First, we have the HARP program. HARP, which stands for Home Affordable Refinance Program, is designed to help homeowners who have loans through Fannie Mae and Freddie Mac refinance into lower interest rates, even if they are underwater. While there are a few qualifying conditions you must meet such as minimum credit scores and closing on the loan before May 2009, the program is fairly lenient. If your files passes the automated underwriting system, you may be able to get by with reduced documentation and even forego an appraisal.
The idea is that if you have been paying your higher interest rate mortgage on time, you will probably continue if the payment goes down.
For more information, visit my website at nwiloanguy.com.
To find out if you are eligible, Apply Now!
Second, starting this June, FHA will be lowering the mortgage insurance premiums for those hoping to refinance. While all the details have not been released yet, I’ll make sure I keep you up-to-date when they come out.
As always, I’m available to answer your questions and help guide you through the obstacle course known as the mortgage process. I can be reached at 219-695-0369 or email me at scott@nwiloanguy.com.
Scott
Valparaiso, Indiana mortgage expert specializing in FHA, VA, HARP, and USDA Rural Development loans.