Do you own a vacation home? Or, do you have an investment property that you’re renting to others? Has this property dropped in value to the point that you’re making payments on a loan that’s higher than home’s value? If so, the Home Affordable Refinance Program (HARP) may be a refinance option for you.

HARP is a federal program set up by the Federal Housing Finance Agency (FHFA) that helps struggling homeowners refinance mortgages on homes that are underwater or near-underwater. Since the program’s inception in 2009, over 2.9 million homeowners (per an October 2013 FHFA Refinance Report) have used it to refinance their homes. About 1 in 6 HARP refinances are for second homes or investment properties.

If Fannie Mae or Freddie Mac owns your mortgage; you’ve been timely with your mortgage payments; and you’ve been unable to refinance, you may be able to take advantage of HARP to get a lower interest rate or a reduction in the term of your mortgage (for example, from 30 years to 15 years).

To be eligible, you must meet the following criteria:

• Fannie Mae or Freddie Mac must own or guarantee your mortgage.
• Your second home must be a single unit or condo. Your investment property must be 1 to 4 units.
• Your mortgage must be been acquired by Fannie Mae or Freddie Mac on or before May 31, 2009.
• You cannot have refinanced your mortgage via HARP previously – unless it’s a Fannie Mae loan that was refinanced with HARP between March and May, 2009.
• You must be current on your mortgage payments and have a good payment history for the past 12 months.
• Your loan-to-value (LTV) ratio (the amount you owe versus the amount your home is currently worth) must be greater than 80%.

If your existing mortgage doesn’t have mortgage insurance, mortgage insurance is not required on your new mortgage, even if the LTV ratio is greater than 80%.

To see if you qualify for a HARP refinance, contact Grandview Lending. Our mortgage specialists are home loan experts. We’ll review your mortgage and financial situation with you and walk you through the loan process to help you find the best refinance option available. Call us today at 866.690.4920.

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