Home Affordable Refinance Programs

What are Home Affordable Refinance Programs?

Home Affordable Refinance Programs or HARP came into existence in 2009 in the United States and was formed by the Federal Housing Finance Agency. HARP was created for people who reside underwater or closer to that in order to provide refinancing option to their mortgages. Government refinance programs such as HARP is an ideal choice for the house owners who bear current mortgage payments but are unable to refinance because of dipping prices of houses amidst correction work going in the U.S. housing business market.


The gigantic inclination towards home affordable refinancing programs came in December 2011 after the change of rules. This alteration allowed no restrictions on negative equity for mortgages that are up to thirty years. In addition, government refinance programs such as HARP elaborated its acceptance on loans for home owners with PMI.


Home Affordable Refinance Program although resembles traditional refinancing patterns; but in fact home refinance programs such as HARP runs on different lines. For qualifying home affordable refinance program i.e. HARP, which is a government refinance program, an individual is required to place an application; experience the underwriting process and pay the fees for refinance. The advantage is that home affordable refinance program doesn’t expect the home owners to possess home equity. Here we can see the big difference between HARP (home affordable refinance programs) and traditional home refinance programs.

What are the benefits of getting a Home Affordable Refinance Programs?

Home affordable refinance programs/Government refinance programs or HARP proffer various benefits. These are:


  • Mortgage insurance is not essential in government refinance program like HARP.
  • Underwriting process is much flexible in home affordable refinance programs.
  • The closing costs of home refinance programs like HARP make it a popular choice among buyers of this loan.
  • No appraisal requirements are present in this type of home refinance program.
  • HARP loans consists of competitive mortgage rates

Who qualifies for a Home Affordable Refinance Program?

Some expectations are supposed to be met in order to get qualified for government refinance programs such as HARP.


  • Fannie Mae or Freddie Mac must guarantee or own the mortgage (2009 – on or before)
  • The owner of the home should not consist of previous mortgage having HARP until and unless the loan is Fannie Man between 2009 March and May.
  • The mortgage payments in this home refinance program ought to be current on the part of home owners.
  • The current LTV (loan to value ratio) must be greater than eighty percent.
  • The owner of the home must experience loan benefits through less monthly payments or the transformation from ARM i.e. adjustable rate mortgage to a fixed one.

Note: This program may have ended. Please check with one of ARBOR’s licensed agents for more info.