The Home Affordable Refinance Program (HARP) was implemented by the federal government in 2009. It’s still available to help underwater homeowners (those who owe more on their homes than the home is worth) and those who are near-underwater refinance their homes into a lower payment. However, HARP is set to end in September 2017. As rates have been trending upward lately, you may be interested in taking advantage of the program. If so, now is the time to explore your options.
To qualify for HARP:
- Your mortgage must have been obtained through a Fannie Mae or Freddie Mac program lender, and you must have acquired it no later than May 31, 2009.
- You can’t have had a late mortgage payment in the past six months, or more than one in the past 12 months.
- The transaction, like all refinance transactions, must have a net tangible benefit to the borrower. It is not designed to keep homeowners out of foreclosure or to act as a loan modification program. For example, if you were going from an adjustable rate mortgage to one with a fixed rate, that would be considered of benefit to you. However, it would not be considered beneficial to you to refinance your mortgage at the same rate and pay fees to the lender in order to do it. In this instance, you wouldn’t qualify for HARP.
Is HARP for you? Discuss it with your mortgage professional, who can provide more details on the program and help you decide whether you qualify.