Call for Rates: Helpful VA Home Loan Programs
For veterans who want to refinance their homes. Percentage rates are the lowest in decades.
For veterans who want to buy a new home. VA loans require No down-payment.
For veterans who want to refinance and get additional cash-out of their home.
Do VA Loans Qualify for HARP?
Today, with the difficult economic situation in America, more people are searching for ways to refinance their homes. Certainly, no one wants to walk away from a home because they can't keep up with the mortgage payment. One option that many are exploring is the refinancing process; this is a key way to retain the home and potentially lower the monthly payments.
Many homeowners, however, find out when they try to refinance their mortgage that they aren't qualified to do so. With the economic downturn, many homeowners are finding that their mortgage requirements are higher than the value of the home. In this situation, many banks won't offer such homeowners a loan. The HARP, or Home Affordable Refinance Program, was designed by the Obama administration to help homeowners in this situation.
HARP's Help
While HARP was designed for homeowners who face this predicament, it isn't for every homeowner. HARP includes very strict guidelines and qualifications. The most important of HARP's qualifications is that the mortgage must be owned or guaranteed by Fannie Mae or Freddie Mac. In addition, to qualify for HARP, the homeowners cannot have a VA, FHA or USDA loan.
Choices with a VA Loan
For homeowners with a VA loan, there are other opportunities for assistance through the president's Making Home Affordable Program. While the HARP program does not take homeowners with a VA loan, the HAMP program does. HAMP is an abbreviation for the Home Affordable Modification Program which helps financially-strapped homeowners avoid foreclosure. HAMP modifies loans so that the monthly payments for the homeowner won't exceed 31% of their pre-tax monthly income. For people who are eligible, these modifications permanently change the terms of the original mortgage and are aimed to help homeowners to keep their homes during times of economic hardship.
Homeowners with VA loans who are not eligible for HAMP can certainly look into other programs that can offer assistance. Homeowners in difficult financial situations should speak with a mortgage broker, a lawyer or a financial planner to find out about other government programs and assistance programs that might be offer some financial assistance to homeowners with VA loans.