What is the HIRO Program?

Owning a home can be an exciting and rewarding experience. However, if you have run into financial difficulties, your mortgage payment might feel like a burden that is bringing down your quality of life or threatening your ability to protect your credit and retain your home. Many people have found themselves in financial difficulties lately and many of them are not aware of the opportunities for relief that exist to help them out.

The HIRO program is a mortgage relief program that is intended for homeowners who want to refinance to the lower rates that are currently offered but they do not have enough equity in their home for a traditional refinance. This is the Fannie Mae High LTV Refinance Option and it makes sure that those who bought homes during periods with high-interest rates can now seek a better loan payment and interest rate.

If you want to learn more about this valuable program, keep reading!

Who is Eligible for the HIRO Program?

There is a specific set of requirements that you must meet to qualify for the HIRO program. You must meet all of the requirements or you will not be able to take advantage of the loan program.

• You must have a Fannie Mae-backed mortgage
• Your mortgage was originated on or after Oct 1, 2017
• You have not made any payments that were more than 30 days late in the last 6-month period
• You have no more than one late payment in the past 12 months
• You have no payments that are more than 30 days late

Your loan must be eligible to receive a lower interest rate, a reduced monthly principal or interest payment, a shorter amortization, or be converted to a better loan product

You can elect to remove a borrower at this time but you will have to qualify for the loan again on your own or with a new borrower. You will also need to have a minimum of a 620 credit score and a max debt-to-income ratio of 45%. Some lenders may not let you remove a borrower.

You will only need to provide proof of income or bank statements if your payment is increasing by more than 20% or if you are removing a borrower from your loan. This makes the process much easier overall for borrowers seeking this kind of assistance.

What Does This Program Do?

This program offers homeowners the ability to choose between various benefits. You can elect to have your home loan converted from a variable interest rate to a fixed-rate loan, you can reduce your monthly principal or interest payment, you can opt for a shorter amortization, or you can receive a lower interest rate.

All of these benefits can improve your chances of making timely payments on your home while you seek to remedy your financial difficulties. You can also use this refinance process to help you to improve your overall debt structure. This is a very flexible program when compared to other loan programs and you will find that there are not many other loan options out there that will let you choose from so many ways to alter your loan.

When Does The Program Expire?

There is no expiration date for this program. This makes it a great option for those who have been considering reducing their loan payment or changing to a better set of loan options but have been worried about the timeline involved. You will still need to meet all of the requirements at the time that you submit your application. The lack of an end date to the program makes it possible for you to improve your credit or debt-to-income ratio before you apply.

How do I Apply for HIRO?

To apply for the HIRO program you will need a new appraisal of your home. You will need to submit a full application and you will need to get an appraisal waiver or request an appraisal at this time or before. There is no maximum LTV for this loan process so the appraisal should not be a barrier to you taking advantage of the program.

You can speak to a local lender about this loan process and see if they will work with you to undertake the application process. You can also work with your existing lender to take advantage of this program. If you want to look up your loan online before you begin the process you can often visit your existing lender’s online portal or use the Fannie Mae loan lookup tool.