Michigan homeowners have been unable to refinance their homes to the current historically low mortgage interest rates because more is owed on their homes than what they are worth (also referred to as an underwater mortgage). The state of Michigan has been hit hard by the economic downturn in our country's economy, which caused home values all over the state to plummet. —
Through the Obama Administration's bailout package, the government released the Home Affordable Refinance Program (HARP). This mortgage refinance program allows homeowners to lower their mortgage payments on their home loan and refinance with no appraisal, even if they may owe more than the home's value. The new HARP guidelines allow an unlimited loan-to-value (LTV) of your home. The program is intended to help those who have paid their payments on time but want to refinance to save money on their monthly mortgage payments.
Many banks are not participating in the program despite the Obama Administration’s wishes and those that are only offer the benefits to current mortgage clients. Homebuyers may benefit by applying for a HARP mortgage through a mortgage broker or mortgage lender to allow for additional program options with less restrictions than the large banks impose.
To qualify for a Michigan HARP refinance a homeowner must meet the following criteria:
- All mortgage payments must have been paid on time for the last 12 months
- The loan must be owned by Freddie Mac or Fannie Mae
- The homeowner must have taken out their mortgage prior to June 1st 2009
- Borrower must be able to document their income
If a borrower believes they may be eligible for the Michigan Home Affordable Refinance Program then they should contact a mortgage company and be prepared to gather applicable documentation to apply for the loan. Required documentation includes, 2 forms of identification, income information, asset information and proof that their mortgage was taken out prior to June 1st 2009 (usually the Note).
The HARP program is set to expire at the end of 2013 according to current legislation however it has been extended from its prior expiration (HARP 2.0) in its current form and many experts believe it may be extended again (HARP 3.0). In addition to extending the program’s expiration, the program may be opened up to allow additional homeowners to qualify for the program. The requirement for the mortgage to be owned by Fannie Mae or Freddie Mac may be waived as well as other income verification requirements.
To get additional information about this mortgage program, contact Riverbank Finance LLC for a free consultation.
About Riverbank Finance LLC:
Riverbank is a Grand Rapids mortgage company that specializes in helping Michigan homeowners reduce their mortgage payments through refinance programs.
Release ID: 3776