What is a HARP Loan?

The Home Affordable Refinance Program (HARP) is a federal government initiative designed to help struggling homeowners refinance their mortgages. If you are current on your mortgage but your home has lost value, you may be eligible for a HARP loan.

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What is a HARP Loan?

The Home Affordable Refinance Program (HARP) is a federal program of the United States, set up in 2009 in response to the subprime mortgage crisis.

HARP’s stated goal is “to provide struggling homeowners who are current on their mortgage payments, but have little to no equity in their homes the opportunity to refinance their mortgage”.

In order to be eligible for a HARP loan, homeowners must meet the following criteria:
-They must have a loan that is owned or guaranteed by Fannie Mae or Freddie Mac.
-They must have a loan origination date on or before May 31, 2009.
-They must have a loan-to-value ratio of greater than 80%.
-They must be current on their mortgage payments (no more than two 30-day late payments in the last 12 months).
-They must not have previously refinanced their mortgage through HARP.

How do HARP Loans Work?

The Home Affordable Refinance Program (HARP) is a federal program designed to help eligible homeowners who have seen a drop in their home value refinance to a more affordable mortgage.

HARP is different from a traditional refinance in that it doesn’t require homeowners to have perfect credit or a high equity stake in their homes. In fact, HARP has helped over 3 million American families since it was first introduced in 2009.

To be eligible for a HARP loan, you must:
-Be current on your mortgage payments with no more than one 30-day late payment in the last 12 months
-Have a mortgage that is owned or guaranteed by Freddie Mac or Fannie Mae
-Have a loan-to-value ratio (LTV) of 80% or less

If you meet these eligibility requirements, you may be able to take advantage of HARP’s low interest rates and save money on your monthly mortgage payment.

Who is Eligible for a HARP Loan?

The Home Affordable Refinance Program (HARP) is a federal program of the United States, set up in 2009 in response to the subprime mortgage crisis.

To be eligible for a HARP loan, you must:
-Be current on your mortgage payments, with no late payments in the last six months and no more than one in the last 12 months
-Have a mortgage that is owned by Fannie Mae or Freddie Mac
-Have a mortgage with a loan-to-value (LTV) ratio of 80% or more

If you qualify for HARP, you can refinance your mortgage even if you owe more than the home is worth.

What are the Benefits of a HARP Loan?

The Home Affordable Refinance Program (HARP) is a federal program of the United States, set up in March 2009, to help underwater and near-underwater homeowners refinance their mortgages.The program is also known as Making Home Affordable, the Obama Refi, A Better Bargain For U.S. Homeowners, DU Refi Plus, Harp 2.0 or HARP 2.0.[1][2]

HARP provides borrowers, who may not otherwise qualify for refinancing because of declining property values or decreased home equity, the ability to refinance their mortgage into a more affordable or less risky loan.

The extent to which HARP will help individual homeowners depends on several factors:
-Type of loan owned (e.g., Fannie Mae or Freddie Mac vs. non-government-sponsored enterprise [GSE] loan).
-Loan-to-value ratio (LTV) at origination vs. current LTV.
-Whether the borrower has been timely with mortgage payments (i.e., no more than one 30-day late payment in last 12 months and none in last six months).

How to Get a HARP Loan?

The Home Affordable Refinance Program (HARP) is a federal program that provides eligible homeowners the opportunity to refinance their mortgage to a new lender at a lower interest rate, even if they owe more than the home is currently worth.

In order to be eligible for a HARP loan, you must:
-Have a mortgage that is owned or guaranteed by Fannie Mae or Freddie Mac
-Have a good payment history on your mortgage
-Be current on your mortgage payments
-Have a loan-to-value (LTV) ratio of 80% or less
-Not be able to refinance through a traditional program because of the value of your home or because you have negative equity

If you meet all of the above criteria, you can apply for a HARP loan through any participating lender.