Can I refinance my rental property under HARP?
Yes, you can refinance your rental property under the Home Affordable Refinance Program (HARP). However, there are certain eligibility requirements that you need to meet in order to qualify for a HARP refinance on a rental property.
HARP was established to help homeowners refinance their mortgages to a lower interest rate, even if they owe more than the home is worth. The program was designed to prevent foreclosures and make homeownership more affordable for those who are struggling with their mortgage payments.
When it comes to refinancing a rental property under HARP, there are specific guidelines that must be followed. Some of the key requirements include:
1. The property must be a 1-4 unit residential property that is considered your primary residence.
2. The mortgage on the property must be owned or guaranteed by Fannie Mae or Freddie Mac.
3. You must be current on your mortgage payments with no more than one late payment in the past 12 months.
4. The current loan-to-value ratio on the property must be greater than 80%.
5. You must have obtained your current mortgage before May 31, 2009.
If you meet these criteria, you may be eligible to refinance your rental property under HARP. It is important to note that HARP is scheduled to end on December 31, 2018, so if you are interested in taking advantage of the program, it is best to act quickly.
FAQs about refinancing a rental property under HARP
1. Can I refinance a rental property that is underwater?
Yes, one of the main objectives of HARP is to help homeowners refinance properties that are underwater, meaning they owe more on the mortgage than the home is worth.
2. Can I refinance multiple rental properties under HARP?
No, HARP only allows for the refinancing of one primary residence. If you own multiple rental properties, you will need to choose one to refinance under the program.
3. Can I use HARP to refinance a rental property with a fixed-rate mortgage?
Yes, HARP allows for the refinancing of rental properties with fixed-rate mortgages. However, the new loan must have a lower interest rate than the existing mortgage.
4. Can I refinance a rental property that is owned by a business entity under HARP?
No, HARP is only available for rental properties that are owned by individuals. Business entities are not eligible for the program.
5. Can I refinance a rental property that has a second mortgage under HARP?
Yes, you can refinance a rental property that has a second mortgage under HARP. However, the second mortgage lender must agree to remain in a second lien position.
6. Can I refinance a rental property that I inherited under HARP?
Yes, you can refinance a rental property that you inherited under HARP as long as you meet all the eligibility requirements of the program.
7. Can I refinance a rental property that is currently in foreclosure under HARP?
No, HARP does not allow for the refinancing of properties that are in foreclosure. You must be current on your mortgage payments in order to qualify for the program.
8. Can I refinance a rental property that is located outside of the United States under HARP?
No, HARP is only available for rental properties that are located within the United States. Properties located outside of the country are not eligible for the program.
9. Can I refinance a rental property that is not my primary residence under HARP?
No, HARP is specifically designed for primary residences. Rental properties that are not occupied by the owner are not eligible for the program.
10. Can I refinance a rental property that is in an LLC under HARP?
No, rental properties that are owned by LLCs or other business entities are not eligible for refinancing under HARP. The program is only available for properties owned by individuals.
11. Can I refinance a rental property that is a vacation home under HARP?
No, HARP is only available for primary residences. Vacation homes or second homes are not eligible for refinancing under the program.
12. Can I refinance a rental property that is in forbearance under HARP?
No, HARP does not allow for the refinancing of properties that are in forbearance. You must be current on your mortgage payments in order to qualify for the program.