If you qualify for a HARP loan, it can help you keep your house and reduce your payment to something that is more realistic for you to afford. Still, there have been a lot of negative things in the news about people trying to get these loans and not being successful. It can be difficult to tell whether that’s media spin or accuracy, and the only way you’ll know if you can qualify is to try. With HARP loans, you get help that you may not be able to get otherwise, so you can stay in your house and have a payment you can afford. Still, not everyone qualifies for the program, so it’s important to talk with your lender and see if you meet the requirements.
1) Is HARP only for low-income borrowers?
The HARP program isn’t just for people who have low income. Since it’s not a home buying program, it’s not focused on income requirements the same way a purchase would be. Instead, it looks at what your income is in relation to the house payment you have, and the price of the house when you bought it versus what it’s worth right now. From those pieces of information and your financial and credit profile, a determination can be made as to how your home can be refinanced through HARP in order to make it affordable for you and realistic in price.
2) Who can qualify for the HARP program?
Many people qualify for the HARP program. There are income regulations and credit requirements, but it’s also basically a hardship program. A lot of people who apply for it are already struggling financially or having trouble with their credit, from getting behind in their payments. The program takes that into account, in order to make sure that the very problems that got people into needing HARP don’t stop them from using HARP.
3) Hasn’t HARP ended already?
The people buying a home right now are focused on the programs that will let them purchase what they need to, but for those who are already in their homes there are programs like HARP to help them. A lot of people assume that the HARP program has ended, because it’s not in the news or advertised on television as much as it used to be. That’s not the case, though, and people can still get a HARP loan if they qualify.
4) Will the government own your loan?
While HARP is a government program, you’ll work with the lender who already has your loan to make modifications to that loan. That’s different than turning your loan over to the government, which is not the same thing. Overall, you can expect to keep the same lender, and possibly even the same due date or loan number. What you can expect to change is the total amount due on your loan and the monthly payment. The interest rate may also change.
5) Do jumbo loans qualify?
Many people assume they can’t get HARP loans so they don’t try to qualify, but if you’re struggling it’s important to see if you can get a HARP loan to help you save your home. If you have a jumbo loan it may be more difficult for you to get a HARP refinance, but that can depend on your financial profile, your credit, and the amount of your loan, along with the area of the country in which you live and the home values there.
6) What happens if you get turned down?
When you focus on the purchase of a house, you probably don’t think that you’ll need a HARP refinance in the future. Still, these things can happen. If you do have to use HARP, you may be turned down. That happens frequently, and can be very frustrating. That doesn’t mean you can’t reapply, though. If you really feel you should qualify for the program and you need the help, don’t give up. Keep trying, and you may be able to get your refinance.
7) Can your lender help you?
Ideally, your lender will work with you on a HARP refinance from the very first question you have about it. Unfortunately, not all lenders are like that. Some are much more willing to help than others, and it will depend on what your lender actually wants to offer to you whether you can get the help you need or whether you’ll need an advocate to work with you.
8) Should you refinance some other way?
Occasionally, there may be better options for your refinancing needs. If HARP doesn’t work for you, or you want to consider other options, talking to lenders can give you something to think about. While HARP is a good choice, it’s not the only choice to consider if you need to make a change in what you pay for your home.
9) Is it time to sell your home?
If you can’t get refinanced at all, and you really don’t qualify for HARP, you may have no choice but to sell your home. That’s always a difficult time, but you should only do that after you’ve exhausted all of your other options and avenues. With HARP and other programs for homeowners who are struggling, you have opportunities to try to get the help you need.
2 Point Highlight
If you qualify for a HARP loan, it can help you keep your house and reduce your payment to something that is more realistic for you to afford.
Many people assume they can’t get HARP loans so they don’t try to qualify, but if you’re struggling it’s important to see if you can get a HARP loan to help you save your home.
