Home Affordable Refinance Program (HARP) Fact Sheet
HARP Mortgage Overview
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HARP is a component of the Making Home Affordable program which was put forward by the Obama administration. Introduced by the Federal Housing Finance Agency (FHFA) and the Treasury Department, HARP lets borrowers with falling home values and limited access to insurance refinance mortgages into more manageable payments and/or interest rates. Some 900,000 borrowers have refinanced through HARP since the program’s inception in April 2009.
HARP is not the only refinancing option that homeowners can use. In fact, Fannie Mae and Freddie Mac have assisted about nine million borrowers with refinance since HARP began. What makes HARP unique is that it gives borrowers who are paying a higher amount than their current home value the opportunity to refinance at lower interest rates along with other special benefits.
Who is Eligible
To qualify for refinancing through HARP, the borrower must have taken out a mortgage that was sold to Fannie Mae or Freddie Mac no later than May 31, 2009. To check if your loan is with Fannie or Freddie, you can consult each of these enterprises by visiting the “Who Owns My Loan“page.
Borrowers must also be current on their mortgages and have no record of late payment within the last six months, and may only have one late payment maximum over the past 12-month period. Loans with loan-to-value ratios (LTVs) higher than 80% will continue to be eligible for HARP. Check the “HARP Mortgage Requirements” page for current HARP requirements.
Comments (48)
Kevin
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When are the people with jumbo loans going to be given the same opportunity to lower their rates?
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Lucy
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can i qualify, for this program I only have a work permit?
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chrissy
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So Scott what you are saying is that come after 3/17, which is a strange date because it is a Sat, anyway, I can go to Wells Fargo for example and have them work on a Harp for me? I have an IndyMac loan since 2006- Indymac was shut down and Bankone bought them, do not know when that was, but IndyMac is saying they do not have any info on the Harp2 until April which seems not true
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Aldemar
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Does Citi have the HARP program .
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Robin
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what are the interest rates for HARP.
Are there any fees asscoiated with the HARP? Are there income criteira?
ex: can social security, VA disability payments, and 401k retirement payments be used as my sole source of income?
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Gerry
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Citimortgage (my lender) sent me a letter offering a mortgage refinance through the HARP program at a lower interest rate. I am not in any financial distress. Will I be turned down because I can’t demonstrate distress or need?
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michael
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I talked with Wells Fargo yesterday, and the rep told me that I wouldn’t be eligible for a HARP refi because I cannot show verified employment for the past two years. I have a part-time job since Nov. 2011, and have a business that has not been generating much income; but nowhere did I read any requirement regarding two years of income verification. Can they do this? Do the HARP loan requirements vary from lender to lender?
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Kelly
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I talked to wells fargo today,They told me I have to wait til the end of march to see if we’re eligible?? Also to watch the mail??? But then he says by looking at are loan we will most likely be eligible to REALLY watch the mail.. ????
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mcgonagall
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Somebody just called me from “chase” bank stating that the Harp will be available on February 6th(this next Mon) and that we would now be eligible even though we are quite underwater. Since we could not sell the property without losing $$$, we went ahead and rented it and are now living in another state i.e., it is no longer our “primary” residence. Will we still be available for the new HARP refi? we are taking a 600./mo loss even through renting>>>
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Heather
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Can we use Harp to refinance our investment property (I.e. my husband’s house in his name alone) that he owned before we were married? We are losing $600 a month on it and that’s WITH renters in it.
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Sharon
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Do I need to still pay closing cost?
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Rob Sanchez
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I spoke with Bank of America today and told me I don’t qualify because I have PMI; but I don’t see PMI address in any of the eligibility requirements. I requested a letter from BOA stating that I don’t qualify and they stated they can’t produce such type of letter. What can anyone tell me in regards to PMI and eligibility?
Thanks, Rob
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K C
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I was aproved by BOA and I have a pmi on my current loan and a second mortgage but the second motgage has to approve the whole trans action witch they usually do. I am debating weather or not it is worth going another 8 years and paying 220 less a month. there are closing costs and if you have a second mortgage you have to pay 200 to the title company to get approval from the second mortgage and you lose that if they do or don’t approve it.
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Pam J
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Where do you get the forms to apply for refinancing under HARP? Current on payments but house is under water. Want to refinance under this new program announced in October.
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Cecelia
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I have a Fannie Mae an interest only loan with lender paid mortgage insurance (LPMI). The LMPI was paid upfront, but because it is on my original Fannie Mae loan I cannot refinance under the HARP 2.0 program. I meet all other qualifications. I live in Maryland. Am I now eligible even with the LPMI?
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Kendra
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Hello, since refinancing to a harp loan just a few months ago, the rates have dropped even more. Can we refi it already?
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Marilyn
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No… Loan has to be prior to June 2009.
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Marilyn
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it was April 2,2009
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Angela
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Can I use the HARP program if I am in active Chapter 13 bankruptcy?
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LAURA VILLARREAL
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I also am in the process of ending our chapter 13 in about 6-8 months. I am interested in the answer to this question as well if you receive an answer please notify me. Thank you in advance.
Laura
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Alice
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Does this HARP Program modify the principle to current value of the property, Why would I keep my house that is only worth 250,000 and not the 480,00 I paid, I will never be on top of this loan
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Rosevelt Fortune
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I bought my home in 2005 for 340.000,00 .did get a second mortgage witch I am paying to Chase Bank.Chase told me that my house is only worth 160000,00
I have to pay them 297.000,00.
Chase also told me that I am not qualified for the HARP program.
I am up to the point of let the house go if Ido not find any other solution.
If you have any answers please tell me something about this problem
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Troy
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I has borrower the property owns by FannieMae, still not qualified for the HARP2 , according to the Lender I submitted? and they don’t give out the reason.
The loan must delivered to Fannie before or on 3/2009!!! How would we know when was the loan delivered to Fannie? Please help any one.
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radonda
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Had the same problem with GMAC!their loan(will not fund a loan unless underwritten by fanny or fredy)They told me a “system glitch”we all sure are hearing that a lot these days!Went to fanny web site,yes my loan was a fanny loan,did not matter to GMAC their system could not confirm.Got call from GMAC on Dec.15 2011 all ok now!!!
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Mike
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I went to set up Harp 2 in early December, but the fellow at my credit union tells me things won’t be set up until late January, the later he said April. Is that so? When can we move on this?
thanks, Mike
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Shirley
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I was on the phone with HARP today and I was told that the HARP 2.0 will not be available until March 2012, that is if your LTV is 125% or higher
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Gail
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I left a message on this site as to why Freddie Mac blocked my loan at the computerized underwriter level. I have met all the requirments for a HARP re-fi and yet Freddie Mac blocks it. No PMI, no outstanding debt, qualifing income and my LTV is 125%. Freddie Mac owns the loan yets blocks the final step. WHY???????
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Shirley
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Hello Gail, I am on the phone with HARP right now as I am typing this response. here’s the deal: if your LTV is 125% or higher, you have to go into the HARP 2.0, 125% or lower will go into the HARP 1.0. The 2.0 program guidelines have not all been put out, they are still working on it. I was told that by March the 2.0 HARP program will be available.
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radonda
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“System glitch”or “We are following strict government guidelines”
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David
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I seem to meet all the requirements for HARP. My question is, I don’t currently have PMI, because when I got my loan I had 20% equity or greater. If I refinance, I won’t. Will I then be required to obtain PMI? This could be a breaking point, and not worth the effort.
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Marilyn
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No. If you don’t currently have pmi, its not required on the new loan.
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Wanda McDay
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My mortgage is own my freddie mac, but what if my mortgage company does not help me with HARP what are my other options?
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Chargers Fan
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You can use any lender that is participating in the program.
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Shirley
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Hello Wanda, according to what the President said if your mortgage company does not participate with HARP, you can have your mortgage transfered to a company that does. how this process works, I don’t know you will have to do some research.
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Linda
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We purchased our home in 2007 and it is now worth about 50% of the original value. I did a loan mod nearly 2 years ago and there is a huge deferred principle that will make it impossible for me to sell my home without doing a short sale. Does HARP refi at at current value with no deferred principle? If not, is there a program that will?
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Steve
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I don’t know why the loan must be submitted prior to May30th,2009.It seems people like myself are being left out or penalized because our loan was submitted to Fannie “late” or after June 1st, 2009. I don’t get it.
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Frank
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What about mortgage insurance, if you have it, what is the new rate for the insurance.
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sam
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The MI rate is determined by the MI company you use.
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Redgey
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I have read some of the comments but the one question that I have that I haven’t read a comment for is; If I have an interest only loan that has a PMI that I can’t get out of and the house is worth less than I’m paying for, and I haven’t missed any payments and my credit is good, is this program for me and how will I get started?
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sam
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Yes, your PMI would moved to the new loan which it sounds like you would be eligible.
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Blanca
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Would you please tell me:
1. if under HARP I can refinance my Coop in New york ?
2. I have to deal only with Harp lenders ?
Thank you, Blanca
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sam
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If your current mortgage is insured by Fannie or Freddie it should not be a problem.
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Stephen
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what are the interest rates for HARP. Are there any fees asscoiated with the HARP? Are there income criteira?
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Dave Dillon
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I refi my loan in March of 2010 at 5%. At the time that was a good rate, now rates are down to 4%, can I refi again under Harp rules?
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Chargers Fan
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Not under the new HARP guidelines.
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Pam
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I’d like to know more about the HARP Program. I under the guidelines that you have listed but I am interested in selling my house, not refinancing. Please let me know
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Jamie
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Pam, The HARP program is only is only designed to refinance their homes. If you are under water on your home and need to sell, Look into doing a short sale.
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Anne Wren
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Great. So what about those of us whose loan is not owned by fanny or freddy? I did not choose who my investor was….
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