(HARP) - Home Affordable Refinance Program

What Massachusetts Homeowners Need to Know About
Home Affordable Refinance Program
by Joshua Blumen, Esq.

President Obama’s new Making Home Affordable Refinance Program is an effort to
help distressed homeowners take advantage of historically low fixed-rate mortgages.
Do you qualify? Here’s what you need to know:

1.  Your loan must be owned or securitized by Fannie Mae or Freddie Mac.
Only conforming loans owned or securitized by Fannie Mae and Freddie Mac are
eligible for this program. To find out if your loan qualifies, call Fannie Mae (800-
7FANNIE) or Freddie Mac (800-FREDDIE) or visit them online at www.fanniemae.
com/homeaffordable or www.freddiemac.com/avoidforeclosure.

2.  You must live in the property.  
This program does not apply to investment property.  The purpose of the program is
to help homeowners better afford their homes, not to bail out real estate speculators
who made irresponsible decisions.
3.  You must prove that you have enough income to pay the new mortgage.  Be
ready to document your income with recent pay stubs and a copy of your most
recent tax return.  If you think you are eligible to take advantage of this program, file
your 2008 tax returns filed as soon as possible and avoid requesting an extension to
file.  
4.  Your first mortgage can’t be more than 105% of the current market value
of your property.  
Under previous Fannie and Freddie underwriting guidelines, in addition to having
excellent credit, homeowners needed to have at least 80% equity to refinance and
avoid paying Private Mortgage Insurance.  Homeowners with no equity couldn’t
refinance at all.
Under the new guidelines, homeowners are eligible to refinance as long as their first
mortgage isn’t more than 105% of the current market value of the property. This
means that if you owe $105,000 on a home that’s worth $100,000, you may still be
able to take advantage of the program’s refinance opportunity.  
You may even be able to refinance if you also have a second mortgage or home
equity line. But there’s a catch:  The balance on your first mortgage cannot be more
than 105% of your home’s current market value AND the holder of the second
mortgage or home equity line must agree to re-subordinate behind the new first
mortgage.  
5.  You must be current on your mortgage payments. Lenders need to see
that you’ve met your payment obligations in full and on time.  
If you do qualify for the Making Home Affordable Refinance Program, here’s what
you need to do NOW:
1.  Organize your finances.  At the very least, your new lender will want to see recent
pay stubs and a recent tax return.
2.  Find out the current market value of your property.  Talk with a reputable real
estate agent and consider spending a few hundred dollars for an appraisal.
3.  Talk to a mortgage professional who will work for you. The right mortgage
professional will take the time to understand your financial situation, explain your
options, and help you make an informed decision.
For more detailed information about the Making Home Affordable Program, visit www.
financialstability.gov.  


If you have any further questions you may email Josh here






Josh Blumen                                           Tony Falco
Real Estate Attorney                               Real Estate Agent
Law Offices of Josh Blumen                    Falco Realty Group
1629 Central St.                                     30 Wade Way
Stoughton, MA 02072                             Hanover, MA 02339
781-341-0077                                         508-878-0029

                                                                          
If you are thinking of taking advantage of the (HARP) and would like to refinance, contact Tony
Falco at 508 878 0029. He will put you in touch with only those loan officers that are trusted and
proven to put their client's best interest first. Contact him today!
If you are thinking of taking advantage of the (HARP) and would like to
refinance, contact Tony Falco at 508 878 0029. He will put you in touch
with only those loan officers that are trusted and proven to put their client's
best interest first. Contact him today!