Feel at home. Every step of the way.
HARP Loans (Home Affordable Refinance Program)

In March of 2009 the federal government launched the Home Affordable Refinance Program (HARP). The purpose of the Program, or HARP, as it’s called, is to allow homeowners who owe more than their home is worth to refinance into today’s lower interest rates. The HARP refinance is targeted exclusively to homeowners whose mortgages are backed by Fannie Mae or Freddie Mac. VA and FHA loans are not eligible for HARP refinancing.
If a homeowner paid 20% down at the time their mortgage was funded and is not paying mortgage insurance, no mortgage insurance will be required when obtaining a HARP loan. If a homeowner paid 10% down and refinances into a HARP loan, they’ll continue to pay mortgage insurance, but at the rate they’d pay if there was still 10% equity in the home.
To further understand the program, assume a borrower owns a home that’s currently worth $300,000, but owes $400,000 and has a 6% interest rate. Under normal underwriting guidelines the borrower would not be able to refinance because lenders are unwilling to loan more than a home is worth. However, under HARP guidelines the borrower could refinance the $400,000 mortgage under today’s lower interest rates (as of 5/15/15 and the Fannie Mae Conventional interest rate is about 3.5% at par). Under HARP the borrower would clearly enjoy a much more attractive interest rate.


Set forth below is a summary of the HARP eligibility criteria (please note that this list is not exhaustive):

The borrower must be current on their mortgage payments
Unable to refinance otherwise because of home depreciation
The loan must be backed by Fannie Mae or Freddie Mac The loan was funded on or before May 31, 2009
Your loan has not been previously refinanced via HARP, except prior to May 2009
Your home has less than twenty percent equity in it
You have made no late payments in the last 6 months
You have make no more than one 30-day late payment within the last year
Other restrictions apply
Note that eligible properties are primary residences, vacation properties and rental properties. Keep in mind that all lenders will not fund a HARP loan on all property types. For example, some lenders will not consider rental properties. In that instance, simply seek another lender.

The HARP qualifying guidelines have been widened, so even if you were turned down for a HARP loan in the past, you may qualify under the revised guidelines. (FYI, HARP revised the loan-to-value calculations and unlimited loan-to value ratios are now eligible. In addition, borrowers no longer have to refinance with their current lender—you can now refinance with any lender of your choosing).

HARP has been extended so that it now expires on 12-31-16.

Contact us today for a no cost, no obligation consultation with an expert San Diego Short Sale real estate agent. You’ll receive a FREE copy of our latest Report: “How To Avoid The Ten Costliest Mistakes Made by Short Sale Sellers”
Name :
Address :

Email :
Phone :

Message to Real Estate Agent :

Click Here
For 1% Down Loan
Click Here
Cal-Vet Loans
Click Here
For Conventional Loans
Click Here
For FHA Loans
Click Here
For JUMBO Loans
Click Here
For VA Loans
Click Here
USDA Loans
Click Here
HARP Loans
Click Here
Reverse Mortgage
Click Here
Mortgage Calculator