Comprehensive Guide to the HARP Program
Discover essential details about the HARP program, designed to help homeowners with negative equity refinance their mortgages. Learn eligibility criteria, program extensions, and benefits to secure better loan terms today. This guide offers valuable insights into the HARP initiative, ensuring homeowners are informed about their refinancing options and advantages.
Understanding the HARP Refinance Initiative
Introduced by the Federal Housing Finance Agency in 2009, the Home Affordable Refinance Program (HARP) aims to assist homeowners with negative equity in refinancing their mortgage loans. Specifically catering to those whose home value falls below the amount owed, HARP provides an opportunity for such borrowers to secure better loan terms. This program is especially beneficial for homeowners who keep up with their mortgage payments despite their property being worth less than the remaining mortgage balance.
Unlike conventional lenders that typically require a loan-to-value (LTV) ratio of 80% or below for refinancing without private mortgage insurance (PMI), HARP expanded eligibility to include homes with higher LTV ratios. Initially allowing up to 105%, later increased to 125%, and now extended beyond 125%, HARP 2.0 encouraged more homeowners to qualify, regardless of PMI status. The program's guarantee to lenders that they wouldn’t be penalized for borrower defaults significantly increased participation.
To qualify for HARP, homeowners must meet specific conditions, including:
Mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae;
Mortgage payments must be current on the property—whether primary, secondary, or investment;
Loan-to-value ratio exceeds 80%;
The mortgage originated on or before May 31, 2009.
While additional criteria exist, these represent the core requirements. Originally set to end in December 2016, the HARP program’s deadline has been extended to December 2018, providing homeowners more time to benefit from refinancing options. Explore the opportunity to find a better home loan with HARP today.
