What is the HARP Loan Program?

Article Posted by Expert Author: Tony Caro  on 04/08/2013

Refinancing is not always easy which is why anyone struggling to do so should look into the HARP loan program. HARP stands for Home Affordable Refinance Program and it is a government program designed to help homeowners currently unable to refinance their home.  If you are current on your mortgage, and have a good payment history for the past 12 months, you may be eligible.


Many homeowners are finding that the value of their home has dramatically depreciated because of the housing and mortgage crisis of 2007.  They find that they now owe more on their mortgage than the home is worth, which results in lenders not being willing to perform a refinance because there is inadequate equity. Many people looking for affordable Columbus refinance home mortgage find that this problem gets in the way of finding a more affordable mortgage.


The purpose of the HARP loan program is not only to help such troubled homeowners but also to stabilize the housing market. To be eligible, your mortgage must be owned or guaranteed by Fannie Mae or Freddie Mac and sold to either entity on or before May 31, 2009. The loan-to-value ratio must be greater than 80% and your payments must be current and the prior 12 months must reflect a solid payment history. There are refinance fees associated with this program but the fees might be worth the investment if you are able to gain a better and more agreeable mortgage.


It's crucial that you understand all of your options as you undertake the home mortgage refinance process.  You have to protect yourself from bad scenarios by staying educated about your options, and understanding the ramification of moving forward with any given scenario.


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