Last week, the Federal Housing Finance Agency (FHFA) extended the Home Affordable Refinance Program (HARP) for an additional two years, pushing the expiration date to December 31, 2015 rather than December 31, 2013. FHFA’s reasons for doing this have been made clear. According to FHFA Acting Director Edward J. DeMarco, “More than 2 million homeowners have refinanced through HARP, proving it a useful tool for reducing risk. We are extending the program so more underwater borrowers can benefit from lower interest rates.”
Along with the extension of the HARP program, the FHFA also has plans to launch an informative campaign across the country to make sure that homeowners are educated about everything that HARP offers. This campaign will include information on the requirements to be eligible for HARP as well as how homeowners can use HARP to better their financial condition and take advantage of the enormous benefits.
The HARP program’s primary purpose is to assist homeowners who currently owe more on their home mortgage than what the property is worth. Extending the program only means an extended amount of time in which American homeowners can take advantage of this great opportunity to get back on track with their mortgage.
In order to qualify for HARP, homeowners must meet the following guidelines, as per the FHFA’s press release dated April 11, 2013.