HARP 2.0 aims to help more homeowners.
Government program removes cap on refinancing with negative equity.
A recent expansion of the U.S. government's Home Affordable Refinance Program, or "HARP," will give homeowners who owe more than their home is worth a new opportunity to refinance at today's low interest rates.
The Federal Housing Finance Agency (FHFA) announced the latest updates to the program. These changes, denoted "HARP Phase II" or "HARP 2.0," are intended to let more homeowners refinance even if they have no equity, a position known as being "underwater" or "upside-down." Negative equity typically is a bar to refinancing through conventional loan programs.
Homeowners who don't itemize their federal income tax deductions still benefit from the tax advantage of mortgage interest.
The federal mortgage interest deduction, known as "the MID," is one of the greatest means to encourage homeownership and promote healthy housing markets not only in Virginia, but throughout the nation. That's why all homeowners, including those who don't take the deduction, should be concerned about recent proposals in Washington, D.C., to cut back this important benefit.
Governor McDonnell, Lieutenant Governor Bolling, Attorney General Cuccinelli, and House and Senate Republican Leadership announce joint agenda for 2011 legislative session.
From Governor's press release:
Attorney General Ken Cuccinelli discussed individual property rights and their importance to the people of Virginia, stating, “There are legitimate reasons the government utilizes its power of eminent domain – for the construction of roads, schools, jails and utility easements,” Cuccinelli said. “However, we have to stand up for families and businesses to prevent government from using this extraordinary power when there is not a legitimate public need. A shopping mall or tourism information center is not a core public need.”