HARP 2.0, Home Affordable Refinance Program

What is HARP? HARP stands for: “Home Affordable Refinance Program”. Is your Home worth less than what you bought it for? Is your mortgage upside down in value and equity versus what you owe on your house? If your house is worth less than you owe, here’s your financial life jacket that we are throwing to you and we’re pulling you into the rescue boat? Is your house owned by either Fannie Mae or by Freddie Mac? You may not know if it is. You don’t see their name on your loan papers each month. You see the name of the bank or the servicer (servicing company). If you have not missed payments and you are still a good borrower and you don’t don’t qualify for a loan modification because you are a good borrower, you can qualify for a refinance through either Fannie Mae or Freddie Mac loan product. This is for Fannie Mae & Freddie Mac owned loans. Determine whether your mortgage is owned or guaranteed by Fannie Mae or Freddie Mac by visiting their respective Loan Lookup tools.

If you are current on your mortgage and have been unable to obtain a traditional refinance because the value of your home has declined, you may be eligible to refinance through HARP. HARP is designed to help you refinance into a new affordable, more stable mortgage. The HARP loan is a new loan and will require a loan application and underwriting process. Loan refinance fees will apply.


You may be eligible to apply if you meet all of the following:

  • Your mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae.
  • The mortgage must have been sold to Freddie Mac or Fannie Mae on or before May 31, 2009.
  • The mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May 2009.
  • You must be current on your mortgage at the time of the refinance with a good payment history over the last twelve months.
  • The current loan-to-value (LTV) ratio must be greater than 80%.

*Eligibility criteria are for guidance only. Contact your mortgage servicer to see if you qualify for HARP. A critical part of Fannie Mae’s role in the Making Home AffordableSMProgram is the Home Affordable Refinance Program (HARP), available for refinances of existing Fannie Mae & Freddie Mac owned loans only. The goal of the refinance effort, as announced by the President, is “to provide access to low-cost refinancing for responsible homeowners suffering from falling home prices.” The expectation is that refinancing a Fannie Mae loan will put responsible borrowers in a better position by reducing their monthly principal and interest payments or moving them from a more risky loan structure (such as interest-only or short-term ARM) to a more stable product. Our solutions provide mortgage refinances for current LTVs up to 125 percent, and the first part of 2012 the LTV restrictions will increase to an unlimited LTV.. Fannie Mae provides two Refi Plus™ options to provide Fannie Mae to Fannie Mae refinance solutions to eligible borrowers Freddi Macprovides a Refi Plus™ options to provide Fannie Mae to Fannie Mae refinance solutions to eligible borrowers Refi Plus simplifies the process of refinancing loans that are already in a lender’s servicing portfolio. This product is for LTVs over 80 percent. DU Refi Plus provides increased efficiencies for the origination and underwriting of Fannie Mae to Fannie Mae limited cash-out refinance transactions in DU up to 125 percent LTV. Eligible loans identified in DU receive increased underwriting flexibilities, including expanded eligibility criteria and DU minimum documentation requirements.

Ben Gerritsen is a loan officer based in Salt Lake City, Utah. He is a mortgage loan officer for .
funds HARP Mortgage refinance loans in California, Colorado, Idaho, Oregon, Utah and Washington.