The HARP 2.0 program is also known as, “Making Home Affordable, the Obama Refi.” The program was created by the Federal Housing Finance Agency in March 2009 to allow those with a loan-to-value ratio exceeding 80% to refinance without paying for mortgage insurance.
In order to be eligible for the HARP refinance program: Your loan must be backed by Fannie Mae or Freddie Mac. Current LTV (loan to value) must be greater than 80%. Must be current with no past due payments in 12 months. Home must have been purchased on or before 5/31/2009
Click here to see if you qualify
The Home Affordable Refinance Program ®, also known as HARP ®, is a federal program of the United States, set up by the Federal Housing Finance Agency in March 2009 to help underwater and near-underwater homeowners refinance their mortgages. Join the 3.4 Million people who have benefited from the Home Affordable Refinance Program.
How Can HARP ® Help Me?
As the government continues to purchase mortgage backed securities, rates continue to fall and are near record lows.
The HARP ® program allows you take advantage of current market rates even if you are “underwater”.
These programs are Financial “Life-Changers”. They are also available for a limited time as determined by congress.
Act now to take advantage of the Home Affordable Refinance Program ®, and lower your monthlypayment and/or term using the Fannie Mae/Freddie Mac Streamline process.
Harp 2.0
In an effort to help HARP ® 2.0 to reach more U.S. homeowners, Fannie Mae and Freddie Mac have changed their respective Harp 2.0 mortgage guidelines.
HARP ® 2.0 requirements allow Fannie Mae and Freddie Mac to no longer require verfication of income from at least one HARP ® 2.0 borrower. Now HARP ® 2.0 applicants can provide proof that at least 12 months of mortgage payments exist in reserve for the subject property. This includes the sum of principal + interest payments, monthly real estate tax payments, home owners insurances payments, and any requisite association or community dues.
HARP ® 2.0 also has fewer documentation requirements. For example HARP ® 2.0 guidelines no longer require verfication of large desposits that appear on applicant's bank or other asset statements.
The HARP ® 2.0 guidelines are newer, simpler, and designed to approve more loans so if you were turned down for the HARP ® program in the past then apply again as you may now meet the requirements.
7 things to know about HARP 2.0
The government is going on the offensive.
Fannie Mae and Freddie Mac recently launched a HARP public relations campaign meant to educate U.S. homeowner about the HARP program's benefits.
The agencies believe that the majority of HARP-eligible homeowners are either unaware that the program exists, don't know about the program benefits, or both.
This website receives a lot of emails from homeowners wondering about HARP and whether they're eligible to refinance. Here are some of the common HARP questions (and their sometimes-surprising answers).
1. Can I refinance with HARP if I have a second mortgage?
Yes, you can refinance with HARP if you have a second mortgage. However, in accordance with HARP guidelines, you cannot combine your two mortgages in a cash-out refinance.
To refinance your first mortgage via HARP, but leave your second mortgage unchanged, your second mortgage lender will agree to subordinate its mortgage, which is a fancy way of saying that second mortgage lender will give permission for you to replace the existing first lien on title.
2. Can I I refinance with HARP even though I have no equity in my home?
Yes, you can refinance your home via HARP if you have no equity. That's exactly the premise of the program!
Via HARP 2.0, homeowners can refinance no matter how far underwater they are with their mortgage. This is among the reasons why the HARP refinance has been so popular in Las Vegas, Nevada; Phoenix, Arizona; and other hard-hit areas.
HARP is the "underwater mortgage program" -- of course you can use it when you have no home equity.
3. I was already turned down for HARP once. Can I actually apply for HARP again?
Even if you've been turned down for HARP in the past, it can make sense to apply for HARP again. This is because HARP-approved lenders often use in-house variations of the official, government-issued HARP guidelines.
These variations, which are officially known as "investor overlays", differ from bank-to-bank. If you were turned down by Wells Fargo, for example, you may be able to get approved by Quicken.
If at first you don't succeed, apply, apply again.
Verify your HARP eligibility (Dec 5th, 2017)
4. Can I refinance my home via HARP even though it's not my primary residence?
HARP 2.0 can be used to refinance homes of any occupancy type. Investment properties can be refinanced via HARP, and so can second homes and vacation properties. HARP can be used in all 50 states, the District of Columbia, and all U.S. territories.
5. If my lender doesn't offer HARP, can I apply with another bank instead?
Not all lenders offer The Home Affordable Refinance Program; this is true. However, U.S. homeowners are free to refinance with any HARP-approved lender.
This freedom was among the improvements of HARP 2.0. There are now thousands of lenders making HARP 2.0 mortgages.
6. Can I use HARP even though I am not behind on my mortgage payments?
The HARP refinance program is not meant for homeowners who are behind or delinquent with their mortgage payments. HARP can only be used for homeowners who are current. The HARP program is not meant to save a person's home from foreclosure. Homeowners facing difficulty with payment should contact their loan servicer immediately.
7. Can I use HARP even though my loan has private mortgage insurance?
You can use HARP 2.0 for loans with existing private mortgage insurance (PMI). This is a change from HARP 1.0 and applies to loans with both borrower-paid mortgage insurance (BPMI) and lender-paid mortgage insurance (LPMI).
However, it can be difficult to find banks to offer a PMI program.
If you try to refinance your loan with PMI and you are turned down by a lender, apply again somewhere else. You may get a better outcome.
