The federal government came out with a program in February of 2010 called the Hardest Hit Funds program. They have infused 19 different states with funds to help borrowers who are underwater, refinance their homes under the HARP refinance program, and the funds are to be used to reduce the principal balance. Each state has their own specific rules as to how they disburse the funds, however here in Arizona; the state has an amazing program. Here are the important bullet points:

1)You must be eligible and approved for a HARP refinance
2)You must be at least 20% underwater
3)Your household income cannot be more than 150% of the area median income determined by HUD. (for a family of four in Maricopa County, the income limit is $99,562.50 or less)
4)Maximum contribution is $100,000.00
5)The program will also work to reduce 2nd mortgages (call for details)
6)Loans with Private Mortgage Insurance (PMI) are allowed
7)The funds are not a "lien" against your property
8)Amount of grant is forgiven over 5 years

So here's an example... you qualify for HARP and you have an outstanding balance of $375K. However your home is worth $300K, which puts you at 125% Loan to Value. Under this program, because your underwater by more than 20%, the state of Arizona will give you $75K to reduce your loan, so after the refinance, your new balance will be $300K. And you do not have to pay back the $75K.

The state of Arizona has been given over $300M which has been allocated for this program and as of the date of this article, they have barely given out $3M... this is a great program, so why hasn't anyone taken advantage of it?? Well the problem has been the lenders.. For some reason just about every lender out there has chosen not to participate in the principal reduction program. That is until now.. As of today, Velocity has jumped into the game and we are now doing these HARP refi's with Hardest Hit funds applied within the confinements of the program.

DO I HAVE YOUR ATTENTION??

If you would like more details on this amazing program, or to see you qualify, you can call me directly. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com