Several weeks ago the Federal Housing Finance Agency (FHFA) announced that the HARP program would be extended through the end of 2018. In addition, a new program designed to allow borrowers to refinance even if they have little to no equity in their home was announced. This new program looks as if it will function as a successor to the HARP program in the years to come. See more details below and contact us today for more information or an estimate on a government-backed mortgage.
The Federal Housing Finance Agency (FHFA) has announced that the Home Affordable Refinance Program® (HARP®) will be extended to Dec. 31, 2018, continuing to provide liquidity to support eligible borrowers.
In addition, Fannie Mae and Freddie Mac will introduce new high loan-to-value (LTV) ratio same-investor refinance options for loans with note dates on or after Oct. 1, 2017, with a 15-month seasoning requirement. The high LTV refinance option will provide refinance opportunities to borrowers with existing Fannie Mae or Freddie Mac mortgages who are making their mortgage payments on time but whose LTV ratio for a new mortgage exceeds the maximum allowed for standard refinance products.
Under the new option, as with HARP, the refinance must provide a borrower benefit, such as a lower interest rate. Unlike HARP, the new option will not have an expiration date.