Will HASP Help Ventura County?

Only time will tell us whether the new Homeowner Affordability and Stability Plan (HASP) will help the housing market in Ventura County. It is well known that the housing market in most areas of California has been hard hit by the high number of foreclosed homes, which has impacted home values. The Homeowner Affordability and Stability Plan offers both refinancing and loan modification options for homeowners. However, the plan may not be helpful to Ventura County home owners who owe more than their house is worth in today's market.

Homeowners do not need to be delinquent on their home payments to take advantage of the plan's refinance option. However, the homeowner cannot owe more than 105% of the home's value. If you have both a first and second mortgage, the 105% cap applies to the first mortgage only. So, even though there is a second mortgage, you can still qualify. Here is an example of what the 105% cap looks like in numbers: a home that is valued at $300,000 and has a loan balance in excess of $315,000 will not qualify.

If you can meet the 105% cap restriction, the refinance program may be a great option for you. Loans are being offered with interest rates as low as 2% for five years. At the end of the five year term, the loan will adjust to a fixed interest rate of 5%.

Homeowners current on their mortgage or behind in payments may apply for a refinance loan. To qualify, the property must be the homeowner's principal residence. You must show proof that you will be able to afford the new payments. Your home must have been purchased before January 1, 2009. In addition, your loan must be owned by Fannie Mae or Freddie Mac. To determine whether you are able to take advantage of the refinance program, contact your lender. The refinance program expires June 2010.