Keller Williams Realty Atlanta – Peachtree Road

Current Mortgage Programs To Assist Home Buyers

There are many loan programs and acronyms floating around out there so here is a quick summary of the main programs you may be hearing about.

Home Affordable Mortgage Programs

 HARP:  Home Affordable Refinance Program:

The purpose is to refinance homes that have lost value.  These are loans that are currently held by FNMA and FHLMC with current loan-to-values up to 125%

·        Must be primary residence

·        1-4 Units

·        Must be currently held by FNMA/FHLMC

·        LTV must be equal to or less than 125%

HAMP:  Home Affordable Modification Program:

The purpose is to modify the existing mortgage to a level that is affordable now and sustainable long-term

·        Must currently be delinquent

·        Must be primary residence

·        Mortgage must have been originated prior to 1/1/09

Steps that may be taken under HAMP

·        Immediate reduction of rate to as low as 2%

·        Possibly extend loan to 40 years

·        Possibly forbear a portion of principal until loan is paid off and waive interest on deferred amount.

HAFA:  Home Affordable Foreclosure Alternative:

The purpose is to provide an alternative for those homebuyers not helped by the HAMP program and to gracefully exit the home.

·        Must prove financial hardship

·        Will receive pre-approved short sale terms

·        Will receive full release from future liabilities

·        Must be primary residence

·        Will receive $1500 in relocation assistance

·        Will have 120 days to find buyer and complete short sale

·        Existing payment reduced to 31% of income during marketing

·        Program scheduled to end 12/31/12

HA2MP:  Home Affordable 2nd Lien Modification Program:

Same as the HAMP but for 2nd liens.

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This entry was posted on Wednesday, September 1st, 2010 at 8:03 am and is filed under Mortgage Update. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.