The New HARP Refinance Program
May refer to this program as the Obama Refinance but it’s called the HARP loan, Home Affordable Refinance Program. It was originally meant to help those who were underwater up to a loan to value of 125% if you had a Fannie Mae or Freddie Mac loan. Now they are looking to expand the program to have no cap on the loan to value and to make the interest rates more competitive when the loan to value is over 95% because right now the rates are very high.
It doesn’t seem we will know much until after December 1st, 2011 and then after that once the banks implement it. I am not quite sure how it is going to work since they are saying loans with loan to values over 125% cannot be sold to Fannie or Freddie until March 2012. The program continues to be available only to borrowers whose loans that are from on or before May 31, 2009. This could potentionally benefit a lot of people in Fort Lauderdale & South Florida.
The announcements from Fannie Mae, Freddie Mac, and FHFA may be accessed online: