Quick Access Resources:

• HARP Qualification Tool
• Florida HARP Application

The concept and definition of President Obama’s HARP program or the Home Affordable Refinance Program can be very vast and diverse. The HARP guidelines have been created to direct homeowners on things that must be done and completed.

The HARP program seemed like one of the best solutions available for the housing industry after the global recession challenged the U.S. economy. Technically, this home refinancing program aimed to help millions of homeowners get lower interest rates and monthly payments even if they are currently facing financial problems or their home value is lower than the remaining loan balance.

However, after its initial launch last April 2009, the government observed the expected number of homeowners who should have applied for the program and it fell way below the expected number. That is why along with the extension of the end date, the existing HARP loan program guidelines have been rectified. With the new set of parameters, more homeowners would find it easier to apply primarily because they are now more qualified.

For months, large portions of the population have been hopeful of seeing a new HARP program. Fortunately, prayers have been answered and it was just last October 2011 when the government announced the new changes and guidelines that will soon be implemented b y various mortgage lenders. Here are two prominent changes to the HARP mortgage program guidelines:

1. The 125% limit has been lifted. One of the stringent rules in the old HARP program was the loan-to-value (LTV) cap, which states that in order to qualify for HARP, homeowners’ outstanding loan balance must not exceed more than 125% of their home’s worth. With the new guidelines, anybody can now apply as long as they choose a fixed mortgage rate.
2. For homeowners who wish to have flexibility on their mortgage payments, LTV cap applies but instead of 125%, it is 105%.

Some of the existing HARP refi criteria still apply such as the Fannie Mae and Freddie Mac requirements. Hence, if your mortgage is covered by jumbo mortgage, Untied States Department of Agriculture (USDA), and Federal housing Administration (FHA), you are not qualified to take advantage of the HARP program.

With the new set of HARP guidelines, more homeowners have better chances of applying and getting approval for the program. As long as homeowners agree to the new conditions, they will be out of debt in due time with easier terms of payments.