HARP Refinance Guidelines

harp refinance guidelines

HARP Refinance Guidelines

A HARP loan is one of the best ways to refinance if you’re currently underwater on your mortgage. Because of this, the basic HARP refinance guidelines are in your best interest to know!

What is the Harp Program?

When you have little equity in your home, or owe as much or more on your mortgage than your home is worth, it can be near impossible finding a lender for refinancing. But for borrowers who have remained current on their mortgages, and have loans owned by Fannie Mae or Freddie Mac, there’s HARP.

The Home Affordable Refinance Program, or HARP, has helped millions of American homeowners refinance into a lower rate and payment, even though many owed more than their home is worth.

Why use HARP?

If you’re eligible for HARP refinancing, you can save big in a few ways:

  • Build equity faster with shorter term options
  • Low closing costs (appraisal is not required often)
  • Reduce interest rate
  • Lower monthly payment
  • Fixed-rate mortgage secured

To be eligible for a HARP refinance, you must meet the HARP refinance guidelines.

HARP Refinance Guidelines

  • The loan must be owned by Fannie Mae or Feddie Mac
  • You must be current on your mortgage
  • No 30-day late payments in the last 6 months
  • No more than one payment that was 30+ days late in the last year
  • Your current loan-to-value (LTV) ratio must be greater than 80%
  • Loan must have began on or before May of 2009
  • You can’t use HARP on the same property more than once
  • Your home is the primary residence

Knowing the HARP refinance guidelines, you may be wondering what’s included with the HARP program. We got you covered..

Included in the HARP program

Less Paperwork

Income verification now requires little paperwork. Lenders also have the option of qualifying a borrower by recording that they have at least 12 months of mortgage payments in reserve.

Modified Fees

Risk-related fees for the buyers who refinance into short-term loans have been now been minimized.

No appraisals or underwriting

You most likely will not need a home appraisal or have your loan underwritten when using the HARP refinance program. This is a major plus, making the process much more seamless.

No underwater limits

Borrowers are now able to refinance no matter how much their homes have devaluated. Previous loan-to-value limits were set to 125 percent. Because of this, the HARP loan is adored for being the best ways to refinance if you’re currently underwater.

Are you eligible for HARP?

Not sure if you qualify for the HARP refinance program? Fill out our quick questionnaire here.

You’ll soon have access to your status and some of the nation’s best HARP rates.