HARP Refinance for Second Home or Investment Property
December 31st, 2013
December 31st, 2013
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:
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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