Can the Home Affordable Refinance Program (HARP) help bring your payments down?

Many homeowners are trying to refinance but are unable to for a variety of reasons.  If you have been denied a traditional refinance because the value of your home has declined or you owe more than your home is worth, the Home Affordable Refinance Program (HARP) may be of assistance.

In order to qualify for the HARP program, your mortgage must either be owned or guaranteed by Fannie Mae or Freddie Mac.  Additionally, you must meet the following criteria:

1.  You are current on your mortgage payments.
2.  In the last year, you have never been more than 30 days late when making a mortgage payment.
3.  You do not have an FHA, VA, or USDA loan.
4.  Your mortgage is for more than your home is currently worth.  However, the outstanding amount of your mortgage is not more than 125% of the current value of your home.
5.  You can demonstrate that you will be able to afford the new payments.

Note that if you do qualify for a refinance under HARP, you will still need to submit a loan application and a refinance fee, just as if you were obtaining a refinance through normal channels.  The loan will be underwritten to see if you are qualified to obtain a loan in general.  Just because you meet the criteria listed above, there is no guarantee you will be refinanced under HARP if you do not otherwise qualify for a refinance.

The HARP program is available until June 30, 2012.