Tag Archives: redding homes underwater

FHA Short Refinance for Underwater Homeowners

FHA Short Refinance may be an option for Underwater Homeowners.  In my previous post on HARP 2.0, certain eligibility requirements were necessary to qualify for a HARP loan.  Particularly speaking, your loan must be owned or guaranteed by Fannie Mae or Freddie Mac.  As promised, I have found another refinance option for Upside-Down Homeowners should you not meet HARP guidelines.

FHA Short Refinance is another program available for homeowners owing more than what their home is worth.  The program is designed to reduce the  principal on negative equity homes.  This program may be a great way to get a reduction in principal and lower monthly mortgage payments.  BUT, and I say that with large emphasis, you must meet certain criteria and your current mortgage lender must participate in the FHA Short Refi program.

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Refinance Your Underwater Home with HARP 2.0

If you are one of the many homeowners unable to obtain traditional refinancing due to property decline, you may be eligible for Making Home Affordable’s Home Affordable Refinancing Program (HARP). HARP is a federal mortgage refinancing program announced through the Obama Administration last year. The program is to allow borrowers who are underwater on their homes or who have little equity to refinance at current low interest rates. There is no cap on LTV (loan-to-value) for current fixed rate mortgages. Meaning, homeowners would be able to refinance through HARP even if you owe twice or three times more than the value of your home.

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