HARP 2.0 is a refinance option for homeowners that are "underwater," meaning they owe more on their home than their home is worth.
In order to be eligible for the HARP 2.0 refinance program, you must meet certain criteria. Firstly, you must not have refinanced through the original HARP program. You need to be current on monthly mortgage payments with no late payments over 30 days due in a minimum of 6 months, and no more than one late payment in the previous 12 months. Your mortgage must be backed by Fannie Mae or Freddie Mac and must have been bought by either Fannie or Freddie before May 31st, 2009. Your loan to value (LTV%) must be a minimum of 80% or higher.
The purpose of HARP is to allow homeowners who owe a mortgage that is more than the value of their home a more affordable and stable mortgage.
The burning question for homeowners without a Fannie Mae or Freddie Mac mortgage is if there will be a HARP 3. HARP 3.0 is rumored to be the next stage in the HARP program, offering homeowners without Fannie and Freddie home loans the opportunity to refinance their mortgage if they owe more than the value of their home due to the market crash. According to many sources, HARP 3 is a probability more than a possibility. Check back again for more on the subject!