IN THIS ARTICLE:

Step 1: Are You Up To Date On Your Mortgage Payments?

Yes?

Continue to Step 2

No?

If you have a VA loan continue to Step 3. Otherwise, contact your current servicer. You are not currently eligible to refinance under any of the programs specifically designed for underwater borrowers. However, you may be eligible for a loan modification or another program. In most cases, your current servicer is the company you last submitted your mortgage payment to.

Step 2: Who Backs Your Mortgage?

Verify which organization backs your loan, then move on to Step 3:

• Fannie Mae or Freddie Mac

The majority of all home loans are backed by the government sponsored enterprise's (GSE) of Fannie Mae or Freddie Mac. Click the appropriate link to find out if your loan is owned or guaranteed by Fannie Mae or Freddie Mac.

• Federal Housing Administration (FHA)

The FHA backs the vast majority of all loans not already backed by Fannie Mae and Freddie Mac. You were likely informed that you had an FHA loan during the loan process and at the closing of your current loan.

However, if you are unsure whether you have an FHA loan, look at the following documents:

- Check your monthly statement to see if you have a mortgage insurance premium (MIP). This is what the FHA calls its mortgage insurance — so if you see it on your statement, you have an FHA-insured loan; or

- Check your closing docs and find your closing statement (called a HUD1) . Look in the top-right corner on the first page and check for a HUD 13-digit case number in this format: 000-0000000-000. If you have a HUD case number, then you have an FHA-insured loan. If your loan was issued after October 15, check the loan type on your Closing Disclosure form.

- If you're still uncertain, call your lender or servicer.

• Veterans Affairs (VA)

VA loans are only for military veterans and make up a small number of home loans originated. You likely were informed that you had a VA loan during the loan process and at the closing of your current loan.

• United States Department of Agriculture (USDA)

United States Department of Agriculture home loans are available for those living in designated rural communities with a moderate-to-low income. You were likely informed that you had a USDA loan during the loan process and at the closing of your current loan.

• Other/don't know

If you are unsure who backs your mortgage, contact your loan servicer.

Step 3: Find The Refinancing Program That Applies To Your Loan

If your loan is backed by Fannie Mae or Freddie Mac:

Program: Home Affordable Refinance Program (HARP)

General eligibility guidelines:

• Your current loan must have been sold to Fannie or Freddie before June 1, 2009.
• You must not have completed a HARP refinance since June 1, 2009.
• You will not have made a late payment within the past 6 months.
• You will not have made more than one 30-day late payment in the past 7-12 months.
• Your current loan must fall under the conforming loan limits.

Next steps:

• Contact your current loan servicer to verify your eligibility.
• Shop around for the most competitive mortgage rates and fees. Make sure to check with your current servicer and look for current rates on Zillow, where you can compare multiple offers for HARP loans for underwater borrowers.
• For more info visit HARP.gov

If your loan is backed by the Federal Housing Administration (FHA):

Program: FHA Streamline Refinance

General eligibility guidelines:

• You will not have made a late payment in the past 12 months.
• You will not have completed an FHA Streamline Refinance in the prior 6 months.
• Contact your current loan servicer to verify your eligibility.
• Shop around for the most competitive mortgage rates and fees. Make sure to check with your current servicer and look for current rates on Zillow, where you can compare multiple offers for HARP loans for underwater borrowers.

If your loan is back by Veterans Affairs (VA):

Program: Interest Rate Reduction Refinancing Loan (IRRRL)

General eligibility guidelines:

• You must refinance into a loan with a lower interest rate unless you are refinancing into a fixed-rate mortgage from an adjustable-rate mortgage (ARM).
• Shop around for the most competitive mortgage rates and fees and make sure to check with your current servicer.

If your loan is back by the United States Department of Agriculture (USDA):

Program: Single Family Guaranteed Rural Refinance Pilot

General eligibility guidelines:

• You will not have made a late payment in the past 12 months.
• Your current mortgage rate must be 100 basis points higher than the refinance rate. Example: If your current interest rate is 6 percent, you would need to refinance into a rate that is equal to or lower than 5 percent.
• Make sure you contact your current servicer or the USDA Rural Development Office.

Note:

This is a pilot program and is currently only available in AL, AR, CA, FL, GA, IL, IN, KY, MI, MS, NV, NJ, NM, NC, OH, RI, SC and TN.