What Is HARP Home Affordable Refinance Program and How It Works

The HARP Home Affordable Refinance Program is a government-backed initiative designed to help homeowners refinance their mortgages, even if they owe more than their home's worth. Introduced in 2009, HARP aims to reduce monthly mortgage payments by refinancing to a lower interest rate.

HARP is only available to homeowners with a mortgage backed by Fannie Mae or Freddie Mac. To qualify, homeowners must have a loan-to-value ratio of 80% or higher, which means they owe at least 20% more than their home's current value.

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The Home Affordable Refinance Program, or HARP, was a government-backed initiative launched in 2009 to help homeowners refinance their mortgages. It was designed to provide relief to those who were struggling with underwater mortgages.

The program was overseen by the Federal Housing Finance Agency (FHFA) and was initially created to help homeowners who owed more on their mortgage loans than their homes were worth. This was a result of the housing bubble burst in 2008.

HARP allowed homeowners to refinance their mortgages into more stable home loan products. It intentionally offered more lenient qualifying requirements than standard refinance programs.

The program helped an estimated 3.5 million homes before it eventually came to an end in 2017.

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To qualify for the Home Affordable Refinance Program, also known as HARP, you need to meet some specific requirements.

A mortgage owned or guaranteed by Freddie Mac or Fannie Mae, closed on or before May 31, 2009, is a basic requirement.

You can't be delinquent on your mortgage payments. That means you can't have any late payments over the past six months, and no more than one 30-day late payment over the preceding 12 months.

There is no minimum credit score required to qualify for HARP.

The original loan must have had an LTV ratio of at least 80% to qualify for the program.

You can check with your current lender or access a HARP website to see if the lender participates in the program.

To qualify for a HARP loan, you'll need to meet some specific requirements. The original loan must have had an LTV ratio of at least 80%.

Your mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae, and it must have been closed on or before May 31, 2009. You can check with your current lender or access a HARP website to see if they participate in the program.

To be eligible, you can't be delinquent on your mortgage payments. You can have no late payments over the past six months, and no more than one 30-day late payment over the preceding 12 months. There is no minimum credit score required.

Here are the key loan requirements for HARP:

The Harp Home Affordable Refinance Program offers several benefits to eligible homeowners. You can lower your monthly mortgage payments by refinancing into a new loan with a lower interest rate.

Refinancing into a new loan with a lower interest rate can save you thousands of dollars over the life of your loan. The program allows you to refinance your primary residence, a one-to-four unit property, or a condominium.

To be eligible, your mortgage must be owned or guaranteed by Fannie Mae or Freddie Mac. You must also have a good payment history and be current on your mortgage payments.

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HARP and mortgage modification are two separate programs designed to help homeowners in need, but they serve different purposes. The Home Affordable Modification Program expired in 2016, while HARP was extended until 2016 before being extended again by two years.

A modification can only be secured through the existing lender, and each lender has its own requirements for qualification. This process can impact future creditworthiness and may even result in an additional tax liability for some borrowers.

To qualify for HARP, homeowners had to meet specific eligibility criteria, including a mortgage sold to Fannie Mae or Freddie Mac before May 31, 2009, and an LTV ratio between 80% and 125%. The program underwent changes in 2011, removing the 125% ceiling for LTV ratios and the requirement for manual home appraisals.

Here's a summary of the main differences between HARP and mortgage modification:

HARP and modification are two different programs with distinct purposes. The Home Affordable Modification Program was designed for borrowers who had already defaulted on their loan or were at risk of default.

Unlike HARP, modifications can only be secured through the existing lender, and each lender has its own requirements for qualification. The process of modifying a mortgage changes the terms of a mortgage note, but it's not the same as refinancing.

Modifications can report on the borrower's credit report as having the terms of the mortgage altered, which can impact future creditworthiness. In some cases, modifications can also result in an additional tax liability.

Here are some key differences between HARP and modification:

It's worth noting that modifications can have consequences, such as writing off a portion of the debt that is owed, which the Internal Revenue Service (IRS) may count as earned income.

A mortgage modification is a great option if you're struggling to make mortgage payments. You can modify the terms of your current loan instead of refinancing into a new one.

You could extend your repayment term, which might lower your monthly payments. For example, you might go from a 15-year mortgage to a 30-year mortgage.

With a mortgage modification, you may be able to lower your mortgage rate. This could also make your payments more affordable.

You can try to modify your loan terms to make payments more manageable. This might be a good option if you've fallen behind on payments.

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Although the Home Affordable Refinance Program (HARP) has ended, Fannie Mae and Freddie Mac both have programs for distressed borrowers to refinance their homes.

Fannie Mae and Freddie Mac have taken the place of HARP in helping homeowners refinance their homes.

Both Fannie Mae and Freddie Mac offer similar benefits to HARP, such as lower interest rates and reduced mortgage insurance.

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The HARP Home Affordable Refinance Program was a game-changer for underwater homeowners.

HARP ran from April 1, 2009 to December 31, 2018, providing a vital lifeline for many struggling homeowners.

Approximately 3.45 million borrowers took advantage of HARP, which is a staggering number.

If you're still struggling with your mortgage, don't worry - there are still options available to you today.

Refinancing options for distressed homeowners now include programs from Fannie Mae and Freddie Mac.

Here are the key dates to remember: