HARP 2.0 To Help Homeowners With Negative Equity

The new guidelines for the Home Affordable Refinance Program (HARP) have been released which should help nearly 2 million homeowners who owe more than their house is worth. The new regulations include no Loan to Value (LTV) restrictions on fixed rate loans of 15 or 30 years.  This will help slowdown foreclosures in the hardest hit areas who have watched their home values decrease 50% or more. Lenders have been encouraged to participate with a decrease in liabilities on the new loans, but they will still be held accountable for any fraudulent activities.  These new rules should also help the Mortgage Industry which is struggling with low home sales and a decline in refinance. The program expires on December 31, 2013.

In order to qualify for HARP 2.0

  • Original mortgage must have been sold to Fannie Mae or Freddie Mac prior to April 1, 2009.
  • Current LTV ratio must be greater than 80%.
  • No more than one 30-day delinquency in the last year.
  • Not behind on your payments in the last six months.


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