The Home Affordable Refinance Program (HARP) will be available to a limited amount of homeowners with a positive payment history on a Fannie Mae or Freddy Mac owned loan. These select borrowers would normally be unable to refinance due to their homes decreased value, pushing their current loan-to-value ratios above 80%. The HARP program offers borrowers the opportunity to refinance their loan up to 125% LTV, allowing qualified applicants to refinance an adjustable-rate mortgage into a more advantageous 30-year fixed rate loan.

HARP at a Glance

• There is no loan-to-value cap in the new HARP, for fixed-rate loans. HARP 2.0 allows borrowers loans to exceed 125%.
• The loan on your property must be owned or guaranteed by Fannie Mae or Freddie Mac.
• You must be current on your mortgage payments at the time you apply. You can have one 30-day late payment in the past 12 months, but none within the past 6 months.
• Lenders will no longer have to demonstrate that the borrower has a “reasonable ability to pay”, unless the loan payment increases by 20% or more.
• The refinance improves the long-term affordability or stability of your loan.

Get the latest on HARP info here