With the recent downturn in the housing market, many homeowners are finding themselves underwater on their mortgage. This means that the homeowner actually owes more than the house is worth. At the time of purchase, this was not the case but the depreciation rates of homes over the past several years has caused a huge number of homeowners to now be underwater.
This phenomenon is not just restricted to those who put little to no money down. Even borrowers that put 20% or more down on their home loans are finding themselves underwater on their homes. The reason is that in some areas, the home values have fallen as much as 50% or more over the past several years.
Whom Does HARP Help?
There are options to get out from under a home. The Home Affordable Refinance Program, also known as HARP, can be a wonderful option for some people who have found themselves underwater. Now it should be noted that HARP in Tucson is designed for borrowers who are not behind on their mortgage payments or have not missed any mortgage payments of recent. There are other options available for those who fall into that category.
The HARP in Tucson program helps borrowers obtain financing through less traditional channels. If a borrower has been denied elsewhere because of the lowered value of the home, then a refinance with HARP can be an excellent opportunity to get out from under a home.
Requirements of HARP
There are some requirements that a borrower should know about HARP. First the current home loan must be financed by or guaranteed by the government backed Freddie Mac or Fannie Mae. Also, the current loan to value of the home must be greater than 80%. Finally, the potential borrower must be current on his or her loan and must not have missed or been late on any recent mortgage payments. Typically 12 months of a good loan history is required.
These are the main points that are required in order to obtain a HARP loan. For borrowers living in Tucson, this can be a wonderful opportunity to get out from underneath a home and finally begin to enjoy financial freedom once again. All that is needed is the help of a loan specialist or mortgage broker in the Tucson area that can help a person go through all the necessary steps to obtain a HARP loan.
It should also be noted that the current HARP loan program is only designed to last for a short period of time. This type of loan assistance is scheduled to end on December 31st, 2013. For any borrower considering this option, time is short. A person needs to act quickly before this loan option expires.
Rob Sanchez is a senior loan officer for Nova Home Loans, a full-service mortgage bank that has helped customers finance their loans for more than 30 years. Financial services include mortgage home loans, first time buyer loans, refinance loans, HARP in Tucson, and more. Service areas include Tucson and Green Valley, Arizona.
