Harp for a 2nd Mortgage

HARP is a fairly new federal legislation program that was implemented in February of 2009. It is a program that is meant to help existing home owners to a federally subsidized mortgage refinance of their current loan. HARP stands for Home Affordable Refinance Program. Harp for a 2nd mortgage is for people who are on an adjustable fixed rate that are about to adjust to a higher monthly payment. It was created to help home owners to refinance to a 30 year fixed rate mortgage. There are many stipulations to the refinance program that can end up disqualifying many home owners from receiving the help they need when refinancing their home. There are also home owners that do qualify and are benefiting from the new change. Two different programs exist that home owners might qualify to receive. They can qualify for only one, or they may not qualify at all. In order to qualify at all a home owners mortgage must be held by either Fanny Mae or Freddie Mac. If a persons mortgage is with a private lender or a credit union they will not qualify for the HARP program. If a persons mortgage is held by either Fannie Mae or Freddie Mac they may qualify. In order to qualify their lender must be a part of the HARP program.

The Fannie Mae program is called a refinance program, and the Freddie Mac program is called a refinance relief program. Once a home owner knows that their mortgage is either with Fannie Mae or Freddie Mac and they know that their lender is a part of the HARP program they can apply for the new Harp for a 2nd mortgage program. One other stipulation will apply that may not qualify a home owner for this program. If a home owner took out a 2nd mortgage when they first bought their home or any time after, the lender for the 2nd mortgage must approve of the federally subsidized mortgage refinance. This is called a subordination. Most 2nd mortgage lenders have been more permissive when allowing a subordination. This is mostly due to the amount of work the government put in, in order to make the HARP program accessible for home owners who needed help refinancing their homes. For people needing a Home Affordable Refinance Program they can visit the Making Home Affordable website at http://www.makinghomeaffordable.gov/
Harp for a 2nd mortgage is designed to help home owners keep their homes by refinancing to a lower monthly payment plan through a 30 year fixed rate mortgage. The Harp program is also for people who did not qualify for other refinancing programs. Home owners can find help with their questions on the Harp programs by talking to a HUD counselor http://www.hud.gov/offices/hsg/sfh/hcc/fc/

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