HARP 2.0 Refinance Program

Obama Plan Set to Help Underwater Homeowners in Delaware

Unveiled just a few short weeks ago, President’s Obama’s revamped Home Affordable Refinance Program (HARP) is expected to help hundreds of thousands of homeowners nationwide take advantage of today’s low-interest rates says Freddie Mac.

The original HARP refinances, started in April 2009, was semi-successful, but had it’s limitations and was needing a re-haul to continue to provide assistance and hopefully a spark to the Delaware economy.

The goal behind the Obama refinance program is clear, allow Delaware homeowners to reduce their monthly mortgage interest rate. These savings will then be, hopefully, plowed back into the local economy which will add jobs and make a dent in the Delaware unemployment rate. If we can create jobs that will fix the Delaware economy and the Delaware Housing Market.

Which Delaware Homeowners Will Qualify for HARP 2.0 Refinance Loans?

The HARP Refinance is mainly targeted at rewarding homeowners who have been making their payments on time, but can’t qualify for a traditional refinance due to their high loan to value, (the fact that they owe more than 125% of what their property may sell for).

Here are a few of the new HARP Program qualifying guidelines:

• Mortgage Payment History – You must have been ON-TIME with your mortgage payments for the prior 6 months and have had no more than one 30 days late in the past 12 months.
• Minimum Credit Score – Most lenders will require a 620 middle credit score to participate
• Prior HARP Refinances – If you have used the HARP in the past you are not eligible to use it again
• Mortgages with Lender Paid MI Mortgages that have Lender Paid Mortgage Insurance (LPMI) are ineligible

Short Sale, Refinance or Foreclosure?

Compared to all of the government refinance programs, HARP 2.0 has the potential to work the best at stopping the massive title wave of foreclosures and short sales that are flooding the Delaware real estate markets.

There are many benefits to refinancing and shaving $300-$1500 off of your monthly mortgage payment, provided you are committed to staying in your home for the next 10, 15, 20 or 30 years.

School Zones, family nearby, area, a home that you’ve invested in and the list go on for reasons why a homeowner would choose to live in a house that is worth less than they owe on the mortgage.

However, if you are not strongly attached to your property, it may be a better idea to consider a short sale now in order to give your credit enough time to heal before property values go back up. If you are considering a short sale and would like a free consultation from a licensed qualified short sale specialist, then call us for a recommendation at 302-703-0727 and ask for John Thomas to get connected to someone who knows your local market.

HARP 2.0 Demand Will Be Strong – Get in the Front of the Line

With the details of the program slowly rolling out and lenders still interpreting and revising guidelines, it will likely be March 2012 before HARP 2.0 refinance loan applications will be accepted.

Savvy homeowners are not waiting for the official roll-out to get a jump on the savings though. So, how can you get a headstart?

If you are underwater on your mortgage, regardless of whether or not you think you qualify for any of the available options, give us a ring at 302-703-0727 to schedule a strategy session as soon as possible so that we can sit down with you and really explore the best decision that meets your needs.

APPLY NOW  for a HARP 2.0 Refinance

John R. Thomas – NMLS 38783

Certified Mortgage Planner – Primary Residential Mortgage, Inc.

302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office

248 E Chestnut Hill Rd, Newark, DE 19713