The article provides a comprehensive overview of the HARP refinance program, highlighting its purpose, eligibility criteria, and expansion over time. Designed to assist homeowners with negative equity, HARP offers a valuable opportunity to secure better loan terms. The guide explains how the program has evolved, its benefits, and how homeowners can determine their eligibility. With extensions available until 2018, homeowners should explore this program for improved mortgage refinancing options, especially if their home value is less than their loan balance.

An Overview of the HARP Refinancing Initiative

Launched by the Federal Housing Finance Agency in 2009, the Home Affordable Refinance Program (HARP) helps homeowners with negative equity refinance their mortgages. Designed for those whose property values are less than the remaining loan balance, HARP offers a pathway to better loan terms. It is especially valuable for homeowners who consistently make mortgage payments despite their home's value being lower than the debt owed.

Unlike traditional lenders that often require a loan-to-value (LTV) ratio of 80% or less to refinance without private mortgage insurance (PMI), HARP broadened eligibility to include homes with higher LTV ratios. Initially allowing up to 105%, the program later increased this limit to 125%, and now permits even higher ratios beyond 125%. This expansion encouraged more homeowners to qualify, regardless of PMI requirements. The program's guarantee that lenders would not be penalized for borrower defaults boosted participation rates.

To qualify for HARP, homeowners must satisfy certain conditions, including:

Mortgage must be owned or backed by Fannie Mae or Freddie Mac;

Mortgage payments are current;

Loan-to-value ratio exceeds 80%;

Loan originated on or before May 31, 2009.

Additional criteria may apply, but these are the primary requirements. Originally set to conclude in December 2016, the HARP program deadline was extended to December 2018, offering homeowners more time to refinance. Discover your options for a better mortgage with HARP today.