HARP versus HAMP
The Home Owner Affordability program is often mixed up with the HAMP or the Home Affordability Modification Program. Although both programs are designed to help homeowners by lowering the monthly mortgage payments there are distinct differences between the programs.
The banking crisis fell upon us in 2007, which caused home prices to decline significantly until 2012. The steep decline left homeowners without equity and unable to refinance to the lower interest rates. The US Government decided to step in to ensure homeowners were able to lower their monthly payments regardless of their equity position. Together with Fannie Mae and Freddie Mac, the Congress introduced the HARP and the HAMP in 2008.
The HARP is designed to help homeowners who (1) currently owe more than their home is worth and (2) are making their mortgage payments on time. For example: Assuming you are a homeowner in Hawaii, you can contact a local mortgage company and receive eligibility assurance for a home loan even if you own $200,000 on a home worth $100,000. The HARP allows you to refinance without the need for an appraisal even if you are upside down. The following qualifications must be met:
- Your loan was originated before May 31st, 2009
- All mortgage payments made on time in the last 12 months
- Your loan is owned by Fannie Mae or Freddie Mac.
To look up your loan here:
The HAMP is designed for homeowners who are unable to pay their current mortgage due unforeseen circumstances, such as job loss or adjustable mortgages. To qualify for the HAMP, you must:
- Currently be behind on your mortgage payments
- You loan must be owned by Fannie Mae or Freddie Mac
- Your mortgage must have been originated before May 1st, 2009
To qualify for the HAMP, contact the lender that is currently servicing your loan. The contact phone number will be located on your mortgage statement.
To qualify for the HARP, contact a local Hawaii mortgage company. Kama’aina Mortgage Group is a local lender located in Honolulu and we lend in the entire state of Hawaii. Our experiences loan officers specialize in the HARP program and are available to qualify you. Call our office today at 808-426-7661.