The HARP® refinance program was announced by President Obama in 2009 and since then millions have taken advantage of lower rates and saved money on their mortgage each month. If you haven’t taken advantage of the HARP® refinance program and have been wondering when the right time is – well, chances are that rates really can’t go much lower.
But what if you are currently unemployed? If you are unemployed, can you do a HARP® refinance?
HARP® Refinance When Unemployed: Is It Possible?
During the downturn of the economy, many people have become unemployed and have struggled just to make ends meet. If you are one of those people, you know how frustrating it can be. The
Home Affordable Refinance Program® has a certain section called the Home Affordable Unemployment Program and it is designed to help people in this situation. Depending on your situation, the program may help you reduce your mortgage payments to 31 percent of your income or suspend them altogether for 12 months or more.
You may be eligible for the Home Affordable Unemployment Program if you meet all of the following criteria:
- You are unemployed and eligible for unemployment benefits.
- You occupy the house as your primary residence.
- You have not previously received a HAMPSM modification.
- You obtained your mortgage on or before January 1, 2009.
- You owe up to $729,750 on your home.
These are high level criteria only and you will need to talk to your lender to see if you can qualify.
The Home Affordable Unemployment Program is not currently available for homeowners with mortgages held by Fannie Mae and Freddie Mac; however, both have their own forbearance arrangements for unemployed homeowners – so you will need to contact your lender to see if you are eligible. The HAUP program is currently scheduled to end December 31, 2013.Click to See the Latest Mortgage Rates»