The New HARP 2 Refinance Program Is In Effect for Underwater Homeowners

Online, April 23, 2012 (Newswire.com) - To notify underwater homeowners of the most up-to-date refinancing choices, Loanshoppers.net has made available the following information in regards to the conditions borrowers are required to fulfill to qualify for the updated Home Affordable Refinance Program, commonly known as HARP. Approximately 4 million Fannie Mae and Freddie Mac homeowners across the nation owe more on their home loans than their homes are valued. According to many lenders, the initial HARP program was very restrictive and most of the country's borrowers who were upside down had been unable to meet the criteria for its relief. The most up-to-date HARP 2 program's criteria, though, have went through a thorough overhaul and will confirm to be of much more aid to owners nationwide.

In the initial program, owners needed to have a loan-to-value (LTV) ratio of 125% or under. However as soon as housing prices started freefalling, owners witnessed their LTVs increase substantially because of their drastically diminished worth real estate values. Homeowners were deemed lucky if their real estate property had an LTV of specifically one hundred twenty five %,.

The HARP 2 program has taken off that ceiling 125% LTV on fixed-rate home loans and going to demonstrate to be the assistance that owners have wanted for some time from the Obama Administration.
A few further requirements for HARP 2 are:
· Eligible residential loans should be owned or guaranteed by Fannie Mae or Freddie Mac.
· Borrowers must be current on the mortgage, with no late payments taking place in the most recent 6 months and no more than one late payment in the previous 12 months.
· Lenders should have sold a homeowner's mortgage loan to Fannie Mae or Freddie Mac on or prior to May 31, 2009.
· The LTV has to be above 80 percent.
· To finish, the subject mortgage must not have been refinanced via HARP previously, unless it was a Fannie Mae mortgage refinanced within the period of March 2009 and May 2009.

Lenders are beginning to provide HARP 2 refinancing, and have been obtainable since mid-March 2012.
To understand more about refinancing with the HARP 2 program and further borrowing points, you should go to http://www.Loanshoppers.net to discover a frequently updated financing terminology. Moreover, possible candidates can receive free online loan quotes from local licensed lenders to assist consumers in receiving the lowest interest rates possible.