Refinancing
5 min read

How HARP Loans Can Benefit Washington State Homeowners: A Refinancing Solution

Written by
Rami Isaac
Published on
August 1, 2024

=# How HARP Loans Can Benefit Washington State Homeowners: A Refinancing Solution

*Refinancing just got easier for Washington State homeowners with HARP Loans*

If you currently own a home in Washington State and are looking for a refinancing solution to lower your monthly mortgage payments, you might have heard of HARP loans. HARP stands for Home Affordable Refinance Program, and it has been specifically designed to help homeowners who may be struggling with their mortgage payment or find themselves underwater on their loan. In this blog post, we will explore how HARP loans can benefit Washington State homeowners and provide them with a valuable refinancing option.

## What is HARP?

HARP was established in 2009 by the Federal Housing Finance Agency (FHFA) in response to the housing crisis. Its primary objective was to assist homeowners with limited equity, who were ineligible for traditional refinancing options, due to the declining value of their property. By offering these homeowners an opportunity to refinance at lower interest rates, HARP aimed to provide much-needed relief and stability.

## Who qualifies for a HARP loan?

HARP loans cater to homeowners who meet specific eligibility criteria. To qualify for a HARP loan, you must:

1. Have a loan owned or guaranteed by Fannie Mae or Freddie Mac, which were established by the federal government to support homeownership.
2. Have obtained your loan on or before May 31, 2009.
3. Be current on your mortgage payments with no late payments exceeding 30 days in the past six months, and no more than one late payment in the past 12 months.
4. Owe more on your mortgage than the current market value of your home (commonly known as being "underwater").

If you meet all these criteria, you could be a prime candidate for a HARP loan in Washington State.

## The benefits of a HARP loan

HARP loans offer several advantages to Washington State homeowners seeking refinancing solutions. Here are some of the key benefits:

### 1. Lower interest rates and reduced monthly payments

When you refinance with a HARP loan, you have the potential to lock in a lower interest rate than what you currently have. This can result in reduced monthly mortgage payments and free up some much-needed cash flow. Lower interest rates can also save you thousands of dollars over the life of your loan, making it a financially wise decision.

### 2. No required property appraisal

Unlike traditional refinancing, HARP loans do not require a property appraisal. This saves homeowners time, as appraisals can be time-consuming and expensive. By eliminating this step, HARP loans streamline the refinancing process, making it quicker and more accessible for Washington State homeowners.

### 3. Flexibility with credit requirements

HARP loans generally have more flexible credit requirements compared to traditional refinancing options. This means that even if you have experienced some credit challenges in the past, you may still be eligible for a HARP loan. This flexibility opens the door to refinancing opportunities that would otherwise be out of reach, helping you take control of your mortgage and financial future.

### 4. Closing costs can be rolled into the loan

Another significant benefit of HARP loans for Washington State homeowners is the ability to roll closing costs into the loan amount. This means that you won't need to come up with a substantial amount of cash upfront to cover these costs, making refinancing more affordable and accessible.

## Take advantage of HARP today!

If you are a Washington State homeowner looking for a refinancing solution, HARP loans could be the answer you've been searching for. With their vast array of benefits and the potential to save you money, HARP loans offer a valuable opportunity to take control of your mortgage payments and achieve long-term financial stability. Contact Lake Union Mortgage today to find out if you qualify for a HARP loan and take the first step towards a brighter, more secure future.


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