Major Changes to The Home Affordable Refinance Program

October 25th, 2011

This week the federal government and the Federal Housing Finance Agency announced some major changes to the Home Affordable Refinance Program (HARP), which aims at helping underwater homeowners.

Changes from this overhaul include:

No underwater limits: Loan-to-value limits were previously set at 125 percent. Now homeowners will be able to refinance regardless of how much their home’s value has dropped – but the LTV must be above 80 percent.

No appraisals or underwriting: In most cases, appraisals will no longer be needed, and loans will not have to be underwritten. This will make the refinance process much easier.

Modified fees: Certain fees will be eliminated or modified for borrowers who refinance into shorter terms.

Extended deadline: The HARP refinance program has been extended to Dec. 31, 2013.

Eligibility guidelines:

-The existing mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009. Homeowners can determine if they have a Fannie Mae or Freddie Mac loan by going to: or

-Borrowers must be current on their mortgage payments with no late payment in the past six months and no more than one late payment in the past 12 months.

For more information, visit

Acadia Lending Group LLC

10 Donald B. Dean, Suite 2
South Portland , Maine 04106

Phone: 207-899-4500

Fax: 207-899-4503

NMLS: 370636


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