If you are a Connecticut homeowner facing difficult financial times, you may be able to qualify for the new Relief Refinance Program to avoid foreclosure of your home. As TSP Mortgage explains, the Relief Refinance Program went into effect on Nov. 1, 2018, and replaces the now defunct Home Affordable Refinance Program, popularly known as HARP, that went into effect in 2009 after the housing bubble burst in 2008 and existed through 2018.
Essentially, the Relief Refinance Program represents the new and improved version of HARP and offers you many advantages, including the following:
- You can refinance your mortgage so as to get better terms.
- You have no loan-to-value restrictions on your new fixed rate loan.
- The annual adjustable-rate mortgage percentage caps out at 105% of the loan-to-value.
- You obtain your new mortgage loan through a private mortgage insurance transfer.
- You have minimal paperwork requirements.
To qualify for RRP relief, you must meet the following requirements:
- Your new loan must go from one lender backed by Fannie Mae to another or from one backed by Freddie Mac to another.
- Your existing mortgage cannot be a HARP refinance.
- You must have closed your original loan on or after Oct. 1, 2017.
- Your existing loan must have been in place for at least 15 months.
- You must show that the RRP will provide you with a distinct advantage, such as switching from an ARM to a loan with a fixed interest rate.
While you should not take this information as legal advice, it can help you understand the Relief Refinance Program, the process involved, and what you should expect if you decide to avail yourself of its benefits.