How to Refinance Your Mortgage with HARP Program

The Home Affordable Refinance Program (HARP), introduced by the Federal Housing Agency in 2009, is designed to help homeowners refinance mortgages when their home value is less than the remaining mortgage balance. This initiative aims to support homeowners facing financial difficulties by providing easier refinancing options for underwater mortgages.

HARP is ideal for homeowners with a good payment history who owe more than their home's worth and haven't missed multiple payments. It offers a simplified process with minimal paperwork, making it accessible for many borrowers.

Key benefits of refinancing via HARP include:

• Lower mortgage interest rates
• Reduced loan terms for quicker payoff
• Switching from adjustable to fixed-rate mortgages to save on interest and shorten terms
• Bundling closing costs into the new loan
• Less paperwork compared to traditional refinancing
• No minimum credit score required
• No appraisal or previous lender underwriting needed
• Supports underwater loans beyond typical limits

To qualify for HARP, applicants must meet specific criteria:

• The mortgage must be current with no more than one late payment in the past year
• The property should be the primary residence, second home, or investment property
• The original loan must be owned by Fannie Mae or Freddie Mac and originated on or before May 31, 2009
• The current loan-to-value (LTV) ratio must exceed 80%

Tools such as LTV calculators and loan lookup features are available on HARP’s official website to help applicants determine eligibility and refinancing options.

While you cannot refinance through HARP more than once, updated eligibility rules may improve your chances of qualifying if you’ve previously used the program.