About Government Refinance and Home Purchase Programs

In his first term, President Obama went to great lengths to try to help the ailing housing market recover by sponsoring or supporting several government refinance assistance programs. The primary refinance program of the Obama administration, the Home Affordable Refinance Program or HARP program, has proven to be a great success after a rocky start. Other programs, such as the FHA streamline program and the VA IRRRL program, have also been very successful over the last four years. In addition, the efforts of the Federal Reserve to keep interest rates low have allowed millions of Americans to refinance to record low rates over the last four years.

While there are not a lot of new government refinance programs on the immediate horizon, it is not too late to take advantage of the record low interest rates and current programs. With President Obama still at the helm the current refinance programs are unlikely being shut down any time soon.

However the clock is ticking on these record low interest rates. Most pundits are predicting that interest rates will be rising over the next 12 months and it is not unlikely that rates will continue rising over the next several years. So if you would like to take advantage of the government sponsored refinance programs and historically low rates available contact us now in the sidebar. There may never be a better time than now.

We have spent a lot of time writing about FHA to FHA streamlines here in the past but there is also a streamline program for borrowers who currently have VA loans. The program is officially called the IRRRL program and it is very much like the FHA to FHA streamline program. Borrowers who have VA loans now can trade their current VA loan in for a new VA loan at a lower rate. With interest rates on VA loans hovering near all time lows lately now is a great time to get a VA IRRRL/streamline.

The advantage of this VA streamline program is that borrowers who have even average credit or better do not need to prove their income levels or assets to qualify. Further, the IRRRL program works no matter how underwater the VA mortgage is right now. There is normally a 0.5% VA funding fee rolled into the new loan for VA IRRRL loans, but that funding fee is waived entirely for disabled veterans. If you have a VA mortgage, contact us in the sidebar right away to learn more about this VA-to-VA streamline, or IRRRL, program.

In an address in Fall Church, VA this morning President Obama fleshed out some of his new plan to help more Americans take advantage of the record low rates we are currently experiencing. The plan reportedly will lean heavily on the FHA and is designed to reduce barriers for folks who are not able to take advantage of the government-backed refinance programs already in place.

The major kink in the new plan is that the Republican controlled congress must approve it and the $5-10 billion price tag that comes along with it. Odds of that happening don’t seem high.

Even so, there are several very useful government-backed refinance programs that are already up and running well, including the FHA streamline program, the HARP program, and the VA IRRRL program. Contact us in the the sidebar to learn which programs might assist your family.