Home Home improvement What is Harp Program?

What is Harp Program?

by Eva

What is Harp Program?

The Harp is an acronym for Home Affordable Refinance Program. It is a government-backed initiative that helps struggling homeowners at risk of foreclosure. According to the Federal Housing Finance Agency data, more than 3.45 million households have used Harp to lower their monthly mortgage payments. 

In addition to helping homeowners lower their monthly payments, the program has also helped improve the housing market’s overall health by reducing foreclosures and stabilizing prices. 

If you wish to know about the HARP program and whether it is suitable for you, here is the information.

What is HARP?

It is a government-led initiative created to help struggling homeowners who are upside down on their mortgages. The program offers a refinancing option for those who owe more than their home is worth, leading to significant savings. Although this program expired on Dec 31, 2018, it was replaced by two programs, such as Fannie Mae’s Refinance Option and Freddie Mac’s Enhanced Relief Refinance Option.  

What is HARP’s Eligibility and Requirement?

To be qualified for a HARP loan, your mortgage must:

  • Be owned or guaranteed by Freddie Mac or Fannie Mae.
  • Have been sold to Freddie Mac or Fannie Mae on or before May 31, 2009.
  • Be currently held by Freddie Mac or Fannie Mae, meaning you cannot refinance out of your HARP loan with a new Freddie Mac or Fannie Mae mortgage.
  • Have a remaining balance greater than 80 percent of your home’s value, an underwater loan.
  • You must not already have a HARP loan. You can only refinance once through HARP.

In addition to meeting the basic requirements listed above, you need to provide some documentation to prove that you qualify for the HARP program. This includes proof of income, employment status, and assets. You also need to have a good credit score and history and enough equity in your home to cover any closing costs associated with the loan.

What is the Fannie Mae High LTV Refinance Option?

To be eligible, Freddie Mac or Fannie Mae must own or guarantee your loan, and this is to ensure that the mortgage meets specific standards and guidelines. The Fannie Mae High LTV Refinance Option is available to borrowers currently on their mortgage and has a loan-to-value ratio of 80% or less. 

This program can help borrowers access lower interest rates or change their loan terms. Borrowers who are not eligible for the HARP program may be able to qualify for this program.

How to Get Fannie Mae High LTV Refinance Option?

Assuming you are eligible for the Fannie Mae High LTV Refinance Option, you can follow these steps to avail of the program:

  • Get quotes from different lenders
  • Apply for the refinance option with the chosen lender.
  • Once approved, sign the paperwork and close on the loan.  


Once everything is finalized, your new loan terms will begin immediately. It means lower monthly payments or a reduced interest rate depending on what type of refinance option you choose. Check out with your lender to confirm all the details about the refinancing to avoid any hassles later.

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