Help for Underwater Homeowners in Virginia. New HARP / Making Home Affordable Rules

HARP – the Home Affordable Refinance Program - is undergoing some much needed revisions to its eligibility criteria. Previously the program allowed some homeowners to refinance their existing mortgages up to 125% of the home’s value.
For example, let’s say you owe $200,000 on your mortgage. Due to the dramatic drop in home values across the Valley (generally), your home is now worth $140,000 (sadly, this is not unreasonable within the Phoenix market). Under the old HARP guidelines, the most you could refinance for would have been 125% of that $140K home value — that would be $175,000 (140K * 1.25 = 175K).
But you owe $200K, so a refi for $175K does you absolutely no good.
Enter the new guidelines. The 125% loan-to-value (LTV) limit has been lifted. Gone. Over. There is no LTV restriction under the new HARP guidelines.
This bodes well for Arizona homeowners.

I am not a lender. I’m a real estate agent.

I can answer some questions on the new HARP / Making Home Affordable program, but the person you really need to be talking to is a lender / loan officer.

Keep in mind, not everyone will be eligible for a HARP refinance. But under the new guidelines, many more just may be able to refi that seriously underwater home…


Rob Alley, Realtor/Owner of Virginia Real Estate Solutions at RE/MAX Assured Properties
434-220-7133
roballeyrealtor@gmail.com
Search MLS Listings and Homes for Sale
Forest Lakes Real Estate and Community Information

Charlottesville Real Estate Experts