Archive for October, 2013

HARP 3.0 Could be Passed Without Congressional Approval for Florida Homeowners

Tuesday, October 29th, 2013

HARP 3.0 Could be Passed Without Congressional Approval for Florida Homeowners!


HARP 3.0 could get released without having Congressional Approval for Homeowners that are currently underwater in Florida. GREAT NEWS!

There is a very good chance that HARP 3 may be released very soon for homeowners who have been anxiously awaiting the release of this much-needed program.
Recently,  the Federal Home Finance Agency (FHFA) took two large steps that show HARP 3 could be launched very soon. HARP 3 is designed for homeowners who do not have a Fannie Mae or Freddie Mac backed mortgage. That is what the HARP 2.0 is for and is still an excellent mortgage program to check into while mortgage interest rates are still low. For a free, no obligation  HARP 2.0 rate quote please don’t hesitate to ask.

The Home Affordable Refinance Program is now past its 4th year since induction. HARP was put in place to help homeowners who had a conventional mortgage that was backed by Fannie Mae or Freddie Mac take advantage of lower rates. The program allowed for homeowners  in a negative equity position (owed more than their home was worth) the ability to refinance their home.

HARP’s initial goal was to help an estimated 7 million homeowners, however those estimates were conservative. By November of 2011, fewer than one million households were successful utilizing the  HARP refinance program. After a dismal response the government then introduced HARP 2.0.

HARP 2.0 has been much more successful because it
1.  Removed any loan to value restrictions, thereby providing a refinance opportunity to severely underwater homeowners.  As you know Florida was one of those States that took a huge hit in home value prices.
2.  HARP 2.0 allows homeowners to refinance with a different lender than their current one. Many banks are not and will not take part in any HARP refinance programs.

HARP 2.0 has helped more than 2.7 million households and many of these households have seen more than $3000 per year in savings.

HARP 3 could be the answer to the many homeowners who continue to pay their mortgage on time but are paying at interest rates that are higher than 6%. More than 2.7 million households have used this program to refinance and today’s HARP program will save the typical homeowner around 27% monthly.


HARP 3 has gained considerable traction and the Government, (Now back up and running!) has called the program “A Better Bargain for the U.S. Homeowner”.  Currently the bill in Congress is called  “The Responsible Homeowners Act of 2013”

Some of the changes being considered for HARP 3 are as follows;

1.  Allow a non- Fannie Mae or Freddie Mac Loan to be refinanced
2.  Allow for larger loan sizes in high-cost areas
3.  Allow for loans to be refinanced that were securitized after May 31, 2009
4.  Allow for a “Re-HARP” allows for a loan to be refinanced again after the household has already used HARP.

Although we are still not clear when or if HARP 3 will be passed, it is important to note that the Federal Home Finance Agency does not require any congressional approval to expand its current HARP program.
Currently, the FHFA has extended the program to December 31, 2015. There is still time to take advantage of this great program. If you have any questions please contact Steve Mugar at American Mortgage Loan Services, LLC.