Home Affordable Refinance Program (also known as HARP)

What is HARP

HARP is designed to help borrowers who may be ineligible for traditional refinancing. Common reasons why people are ineligible for traditional refinancing include: loss of home value or lack of home equity. Similar to other home refinancing options, a HARP mortgage refinance loan will provide you a completely new mortgage. This includes new mortgage terms, rates, and monthly payments. This new arrangement will completely replace your old mortgage and could possibly lower your payment or offer you a more stable loan. This could greatly help you improve your financial situation.

The Purpose

As a result of the housing crash in 2008, more than 9 million people owe more on their home than it is worth. If this applies to you, consider taking out a HARP mortgage. You can put yourself in a better position by changing your monthly payment into something that is easily within reach. The benefits include one or more of the following:

• A reduction in your interest rate and/or your monthly principle. This also includes your mortgage interest payment
• A fixed rate mortgage taking the place of an adjustable-rate, interest-only, or balloon/reset mortgage
• A reduction in the length of your mortgage (e.g. from 30 years down to 15 years)

There are some requirements in order to receive a HARP mortgage refinance loan:

HARP mortgage refinance loans generally require a credit score that indicates good standing. We have professionals on-site that can check your credit score and tell you if you qualify, in just a few minutes.

Do you meet the requirements of a HARP mortgage refinance loan? If so, you can take advantage of today’s low, low interest rates. You can take advantage of a new HARP mortgage refinance loan, even if you owe more than your home is worth! If you meet the requirements and want to know what your mortgage payment could be, simply click here and provide some basic information.

Our loan officers will go to work to find you the lowest possible HARP mortgage rate. This service is completely free, and there is no obligation! It is really that simple.

Are you still not sure if HARP is for you? Would you like to learn more about HARP? Check out:

How to Qualify for HARP

Home Affordable Refinance Program (HARP)

Meeting the following criteria may make you eligible for HARP:

• You are “current” on your mortgage payments (“current” means you have not been 30 days or more late in the last six months and you were not more than one time 30 days late in the six-month period prior to the last six months)
• Your home value has decreased
• You have limited equity or your first mortgage exceeds the current market value of the home (i.e., your loan-to-value ratio must be > 80% to be eligible)
• Your loan is owned or guaranteed by Fannie Mae or Freddie Mac. Check the Fannie Mae Loan Lookup tool.
• Your loan was acquired by Fannie Mae or Freddie Mac on or before May 31, 2009 (this date can be found in the Loan Lookup results)
• Current qualifying credit score of 620

HARP Refinance Process

You have probably heard of the Home Affordable Refinance Program (HARP) or the Making Home Affordable Program. Since the original program’s inception in 2009, substantial changes have been made to the eligibility and criteria and funding guidelines. The current version, HARP 2.0, helps homeowners who are underwater to refinance their mortgages. Let’s take a look at the requirements of a HARP 2.0 loan to see if it is right for you.

Maybe you purchased a property at the peak of the housing market and then lost your job, had your wages reduced, or have a personal financial circumstance where you are unable to afford your monthly payment. You may struggle to refinance because a key component of loan qualification – the home appraisal, is worth far less than their original loan amount.

HARP 2.0 was rolled out as an addition to the Making Home Affordable program. When the original home affordable program fell short of its goals, the Obama administration launched HARP 2.0. There are two major differences between HARP 2.0 and HARP 1.0:
*You can qualify for a refinance even if you have mortgage insurance
*Protects the refinance originator from responsibility if original loan was done fradulently

How to know if you are eligible for HARP 2.0

• Your loan is owned or guaranteed by Fannie Mae or Freddie Mac
• Your loan has been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.
• You have not previously refinanced under HARP, unless you refinanced a Fannie Mae loan under HARP between March and May of 2009
• The current Loan-to-Value ratio is greater than 80 percent
• Must be current on last 12 months of payments

Having a Fannie or Freddie Mac backed mortgage is just a pre-qualifying step. There is a more comprehensive series of criteria you can discuss with your Loan City Home Loan officer.

All homes that meet the eligibility criteria are eligible for HARP, no matter how far underwater the homeowner is on the value of the home. As long as you enter a new mortgage with a fixed rate and a 30 year or shorter term, there is no loan-to-value requirement under HARP 2.0. However, if you use the program to refinance into an adjustable-rate mortgage, your loan-to-value will be capped at 105%. Remember that HARP 2.0 is not a principal forgiveness program, so it does not reduce the amount of principal you owe. However, by refinancing your current loan balance even when you are extremely underwater, it will provide you with the financial capacity to lower your payments, stay in your home and provide debt relief.

What Makes Us Different

HARP 2.0 is a complex government program that requires a unique combination of knowledge and perseverance. The lenders at Loan City Home Loans combine years of experience with a positive customer service attitude that leaves you feeling confident about your financial future.

What makes us different from all the other lenders? We understand the constantly changing landscape of federal government programs, and can make sure you take advantage of your eligibility for various mortgage programs. As the federal government releases new versions of HARP or makes modifications to how loan programs are administered, we can explain your options in terms you can understand. Our loan specialists spend time with you to personalize your experience to make sure you are a satisfied customer. We treat you with the respect you deserve, regardless of your financial situation or knowledge about mortgages. We go the extra mile to track down the history of your existing loans and can help best advise you moving forward of your options. With Loan City Home Loans, there are no gimmicks. Our loan specialists will be with you every step of the way and explain the complex HARP 2.0 program in down to earth terms that you and your family can understand.