One Option To Refinancing Your Arizona Home If Your Are Underwater

The Home Affordable Refinance Program, aka: HARP is a program enacted by the US Government in response to the housing crisis here in the US. More specifically, if you are one of the unfortunate home owners whose home value has dropped to a point where you owe more on your home than it is worth, then the HARP program may be for you.

On the flip side of the coin, if you have a VA loan, you won’t be able to use this program so you won’t be able to take advantage of the streamline low VA rates. Along these same lines, if you have a FHA home loan the HARP program is not for you. You only have a shot of the HARP program if you have a conventional mortgage through Fannie Mae and Freddie Mac. If you meet this requirement, then you’ll want to know some of the other requirements that you’ll face if you want to try to use the HARP program to save your AZ home from foreclosure or having to try to sell it through a short sale.

  • You cannot be behind in your current mortgage payment.
  • You cannot have missed any mortgage payments in the past 12 months, or let any mortgage payment go late by more than 30 days.
  • If you are going to use the HARP program you must be able to demonstrate that you will be in a better financial situation with a lower monthly payment. You may also use it to get rid of an Adjustable Rate Mortgage or some other higher risk mortgage like a interest only mortgage.
  • You will have to have an appraisal, but don’t worry there’s no need to hire a Phoenix janitorial service to get ready like you might have to if you were trying to sell your home. You cannot have any equity and you cannot owe more than 125% of your home’s value.
  • And last but not least, you will have to show that you have adequate income and proof that you have the financial means to repay the new mortgage.

If you think you meet all of these requirements, or most of them at the very least, you may want to pick up the phone and call your nearest mortgage company in Arizona and ask them about a HARP refinance.