Some people live out the rest of their lives with nothing material to claim as their greatest possession. For the fortunate, living in their own houses and having their own property is something they can be proud of. Whatever size of their house and lot, it is theirs to cherish.
This is but one of many reasons people apply for loans and mortgages. Having a roof over your head is a human need. On primaryresidentialmortgage.com is a list of loan options with a comprehensive table for cross-analyzing the differences between each type of loan. And among the options, the Home Affordable Refinance Program (HARP) loan is a standout. This loan, as the website describes, is “a sweet sound for struggling homeowners.”
Understanding the HARP Loan
In 2009, the Federal Housing Agency set up the HARP to aid homeowners pay off an underwater or near-underwater house. As a federal program, it can help homeowners gain financial freedom through refinancing. And by deferring to a lower-rate mortgage without any down payments, a homeowner can get a choice between fixed or adjustable rates for a range of term agreements.
To better understand the HARP loan, here are its key features and requirements:
- With expanded loan-to-value ratios, the HARP loan offers additional assistance.
- When paying off a high mortgage on a property with less value than the remaining balance, the HARP loan can provide financial relief.
- The HARP loan doesn’t require a down payment and has terms of multiple years, fixed and ARM.
- It requires a minimum credit score of 620 and has a maximum loan limit of $417,000. Although there are “high balance” areas that provide loan limits above the aforementioned standard level.
With no underwater limits, appraisals, or underwriting, the HARP loan, along with its modified fees and less paperwork, is an option homeowners can go for.