Guide to Refinance Your Home Loan with HARP Program

The Home Affordable Refinance Program (HARP) is a government-backed initiative designed to help homeowners with underwater mortgages refinance their loans. Launched in 2009 by the Federal Housing Finance Agency (FHFA), HARP aims to make homeownership more accessible and mitigate the effects of the housing crisis. This program benefits homeowners experiencing financial hardships by offering streamlined refinancing options, even if their property value exceeds their loan balance.

If you have a solid payment history, consider applying for HARP. Ensure your mortgage does not include overdue payments that could incur additional interest, and verify that your loan balance is greater than your home’s current value.

Key benefits of refinancing with HARP include:

• Minimal paperwork compared to traditional refinancing, simplifying the application process
• The flexibility to switch from a fixed-rate to an adjustable-rate mortgage, potentially lowering your rates and shortening your loan duration
• The option to bundle various costs into a single new mortgage, reducing upfront expenses
• Potential to secure a lower interest rate for your home loan

• Reduce your total loan term through refinancing
• HARP does not require property appraisals or extensive loan underwriting during the process
• Higher chance of approval since HARP does not impose underwater loan limits

Eligibility criteria for HARP refinancing include:

• No more than one late mortgage payment in the past year
• The property must serve as your primary residence, a secondary home, or an investment property
• The original loan must be owned by Freddie Mac or Fannie Mae and issued on or before May 31, 2009
• Your current mortgage should have a Loan-to-Value (LTV) ratio exceeding 80%

Tools to estimate your LTV ratio are available on HARP's official website. Remember, HARP allows only one refinance per borrower, but recent updates have made qualification easier, such as waived appraisal requirements in certain circumstances and removal of risk fees for shorter amortizations. The program also enables switching from adjustable to fixed rates without a minimum credit score.

To determine if HARP is suitable for your needs, follow these steps:

• Step 1: Gather financial documents, including mortgage statements and income details.
• Step 2: Contact your current mortgage lender or an approved HARP lender listed on the official website. They can verify your loan details and inform you about eligibility.
• Step 3: Proceed through the application and closing process once approved. If denied, consult with a HARP specialist to explore other options.

Caution is advised against fraudulent schemes falsely claiming to offer HARP services. Never pay fees upfront or sign over your property unless working directly with your mortgage lender. Verify the legitimacy of any organization claiming to assist with HARP to protect your assets.