Difference Between HARP and HAMP

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There are two government programs that homeowners qualify for; HAMP and HARP (Home Affordability Modification Program and Home Affordability Refinance Program).  But many people are confused which program they qualify for.  This article will hopefully clear up some things for you so you can get a better understanding as to which program you qualify for.  The following details the difference between the HAMP and the HARP programs.

HARP (Home Affordability Refinance Program)

  • Deadline is June 30, 2011 for HARP 1.0 and December 31, 2013 for HARP 2.0
  • If your loan is owned by Fannie Mae or Freddie  Mac, you qualify.  Check to see if your home is owned by Freddie Mac or Fannie Mae by typing in your address in the link.
  • Allows a loan-to-value ratio of up to 125% of your new home loan
  • People who have ARMs that just re-adjusted or will re-adjust shortly can apply
  • If you get to refinance, there will be no mortgage insurance
  • You need to be current on your payments to be able to be eligible
  • Do not need a documented hardship

HAMP (Home Affordability Modification Program)

  • It must be for your primary residence
  • HAMP is a program that modifies your existing mortgage instead of refinancing (what HARP does)
  • Your mortgage must be equal to or less than $729,750
  • Your mortgage was signed before January 1, 2009
  • Deadline to apply is December 31, 2013
  • Your current payments (including taxes, interest, insurance, and homeowner dues) exceed 31% of your total gross income.
  • Have a hardship that can be documented by paperwork (a list of acceptable documented hardships for loan modification)
  • Your must have verifiable income that is enough to pay for the new payments (and cannot exceed 31% of your gross income)
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