subject: Tips For Home Mortgage Refinancing With No Equity [print this page] With the economy the way it is these days, the government is doing what it can to help struggling homeowners obtain home mortgage refinancing options even in situations of an underwater mortgage or the desire to obtain no equity refinancing. Much of what is available today is offered through the Home Affordable Refinance Program. Often referred to as HARP, this program supports homeowners who want to refinance their home loans so they can better afford their monthly payments. To be eligible, you must qualify for help from the program in several different categories. Here are some useful tips to qualify for home mortgage refinancing with no equity.
The first step in seeing if you qualify for no equity refinancing through the Home Affordable Refinance Program is to ensure that your loan is owned or guaranteed by Freddie Mac or Fannie Mae. This is the main prerequisite for your home mortgage refinancing application to go through. If you already see that you are not qualified, you can still meet with a loan expert to have your financial situation assessed and see what can be done to avail you of your dire financial circumstances.
Next, you cannot be behind on your mortgage payments even if you have an underwater mortgage. Your credit history will reflect whether you have been late on your mortgage payments anytime in the past 12 months. The purpose for this qualification is that you cannot be looking for home mortgage refinancing simply because your irresponsibility has led to an underwater mortgage. The Home Affordable Refinance Program is designed to help people who are authentically struggling and trying to make amends before matters get any worse. Also, your dedication to paying in the past will help prove to the lender that you will be able to pay the new, no equity refinancing loan. Without such proof, you could be denied.
If you feel like you could be qualified for help from the Home Affordable Refinance Program, you need to understand the application process. First, you will provide statements about your gross monthly income, income taxes, information regarding credit card bills and consistency of payments, and any and all account balances of other existing loans like car or student loans. Once you have applied for home mortgage refinancing and receive approval, you will appreciate lower monthly payments without even approaching the point of possible foreclosure, even if you have an underwater mortgage before the process began.
