HARP 3.0 Update – The Responsible Homeowner Refinancing Act of 2013 proposes to eliminate certain closing costs, including the cost of home appraisal, and to make it simpler for homeowners to “change servicers” via the Home Affordable Refinance Program (HARP).
Sen. Menendez and Sen. Boxer have re-drafted their landmark refinance bill meant to help underwater U.S. homeowners get access to today’s low mortgage rates.
HARP 3.0 : No Job Verification, No Income Verification?
The Home Affordable Refinance Program (HARP) was first launched in February 2009. It gave homeowners whose mortgages were securitized by Fannie Mae and Freddie Mac, and whose homes had lost value since the housing market peak, the ability to refinance into lower interest rates without incurring new private mortgage insurance (PMI) costs.
Via HARP and HARP 2.0, a homeowner who had put 20% down on a home, then subsequently lost that equity could refinance without requiring private mortgage insurance (PMI) and that savings was delivered to the homeowner.
In 2011, the Home Affordable Refinance Program was expanded into the program we now call HARP 2.0.
HARP 2.0 eliminated the original HARP’s 125% maximum LTV limitation, which allowed for unlimited loan-to-value, helping homeowners get access to HARP in hard-hit states such as Florida and Nevada, where home values had dropped by fifty percent or more.
To further help such underwater homeowners, the new Home Affordable Refinance Program added loan fee caps for homeowners whose mortgages exceeded a certain loan-to-value; and for homeowners refinancing into a 15-year fixed rate loan.
In roughly 3 years, the original HARP reached one million U.S. households. It took HARP 2.0 just eight months to do the same. The word is getting out and hopefully HARP 3.0 will arrive while rates are low.
In an effort to reach even more U.S. homeowners, the Responsible Homeowner Refinancing Act of 2013 attempts to go further.
Do you need HARP 3.0?
You may not need to wait. We have many programs that may help you right now under HARP 2.0 and our other in-house programs.