Obama’s harp program – The home affordable refinance plan.

In March 2009, the FHFA and the Department of the Treasury called the harp program into life.

The U.S. housing bubble crashed in 2008, and many borrowers were in a difficult situation.

Traditionally, banks require a loan to value ratio of 80% or less to get a refinancing loan without a private mortgage insurance.
However, millions of homeowners lost a significant part of the value of their homes. The Home Value drops below the balance of their mortgages.

“Take for example a house that was purchased for $160,000 but is now worth $100,000 due to the market decline. Further, assume the homeowner owes $120,000 on the mortgage. In this scenario, the loan-to-value ratio would be 120%, and if the homeowner chose to refinance, he would also have to pay for private mortgage insurance. If the homeowner were not already paying for PMI, the added cost could nullify much of the benefit of refinancing, so the homeowner could be effectively prohibited from refinancing
harp provides borrowers, who may not otherwise qualify for refinancing because of declining home values or reduced access to mortgage insurance, the ability to refinance their mortgages into a lower interest rate and/or more stable mortgage product.”

Harp Program

What is harp program for the mortgage and is it real?

YES, the home affordable refinance plan is real. It is a government refinance program (you can call it: president’s mortgage relief program; or: Obama refinance program) The harp loan program helps homeowners who are unable to refinance due to a decline in their home’s value.

When does the harp program end?

The harp program extended through September 30, 2017.

What are the harp requirements?

There are certain criteria to qualify for a harp refinance. Maybe the mortgage service has additional harp loan requirements, too.
You can find the government harp eligibility in the list below.

  1. Fannie Mae or Freddie Mac must own or guarantee the loan.
  2. The loan was originated on or before May 31, 2009.
  3. The current loan-to-value (LTV) ratio must be greater than 80 percent.
  4. The borrower must be current on their mortgage with no late payment in the last six months and no more than one late payment in the last 12 months.

Are You Eligible for HARP?


official infographic

Frequently Asked Questions from

What’s the minimum credit score for refinancing with HARP?

Homeowners with credit scores as low as 580 can refinance with HARP.

Is HARP the only way to refinance my mortgage?

HARP is just one of several options available to homeowners who want to refinance. It’s unique in that it’s the only refinance program that allows borrowers who have little to no equity in their homes to benefit from low interest rates.

Can I refinance my condo or investment property with HARP?


Do I need an appraisal to refinance with HARP?

In many cases, you won’t need to get an appraisal, but the only way to know for sure is to talk with a Home Loan Expert. Call (800) 251-9080 to get in touch with a Home Loan Expert now.

How can I start refinancing with HARP?

The first step is to learn if your mortgage is owned or guaranteed by Freddie Mac or Fannie Mae. Tell us a little bit about you and your home, and we’ll look up your loan to see if you’re eligible. You can also call us at (800) 251-9080 to see what your options are.

My current servicer or mortgage lender can’t help me. Does this mean I don’t qualify for HARP?

Not at all! Your current servicer might have HARP requirements that prevent them from helping you. One of our Home Loan Experts can tell you if you’re eligible to refinance through HARP with Quicken Loans, or you can see if you’re eligible here.

If I refinance with HARP, and I have little or no equity, will I have to pay private mortgage insurance (PMI)?

If you’re not paying PMI today, you might not have to pay it when you refinance with HARP. The only way to know for sure whether you’ll be required to pay PMI is by calling (800) 251-9080 to talk with one of our Home Loan Experts.

If I’m current on my mortgage payments, can I refinance with HARP?

Yes! HARP was designed to help responsible homeowners who are current on their mortgages but have been unable to take advantage of lower interest rates because their homes have decreased in value.

Read this article to find the best mortgage lenders for refinancing.


HARP — The Roadmap to Savings._


How to Start with your harp program?

Watch this short video!




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