HARP: The Home Affordable Refinance Program is a federal program with the goal of helping folks out who are underwater or close to underwater on their home. This is a great program even if your not underwater on your home! In some instances, this can include multiunit properties as well. In many cases,
your LTV (loan to value) is a sticking point when home owners try to refinance their mortgage to take advantage of low rates. However, with the HARP program there is no maximum LTV for fixed loan refinances. In other words, one could be significantly under water on their home and banks will consider refinancing as long as your meet other eligibility criteria. This is great for thousands of home owners still struggling to make payments.
Next, no appraisal! You don’t have to worry about shelling out $500 or more for an appraisal. Appraising real estate can be difficult and stressful for the home owner. With other refinance programs, if the home does not appraise the borrower could be out the cost of the appraisal.
Thirdly, in most cases I’ve found closing costs can be added into the mortgage. One does not have to bring a check to close on their own home. Also, low credit scores don’t appear to be an issue as well.
Finally, everybody’s personal situation varies. To drill down and see if your eligible for HARP check out http://harpprogram.org/ or contact your local mortgage professional. Perhaps due to popularity, this program has been extended until December 31st, 2015