HARP Loans
The Home Affordable Refinance Program (HARP) is a federal program of the United States, set up by the Federal Housing Finance Agency in March 2009, to help underwater and near-underwater homeowners refinance their mortgages.
HARP was specifically designed to allow homeowners who owe more on their mortgage than their home is currently worth to take advantage of lower interest rates. By refinancing through HARP, borrowers could reduce monthly payments, switch from an adjustable-rate to a fixed-rate mortgage, or shorten the loan term, even if they were ‘underwater.’ Although the program officially ended in 2018, it helped millions of homeowners avoid foreclosure and provided a model for future refinancing initiatives aimed at those with high loan-to-value ratios.
HARP Loan Characteristics
1) HARP was a government program designed to help homeowners refinance their mortgages even if they owed more than the current value of their home
2) It was primarily aimed at borrowers with loans backed by Fannie Mae or Freddie Mac
3) HARP allowed homeowners to take advantage of lower interest rates to reduce monthly payments or switch from an adjustable-rate to a fixed-rate mortgage
4) There were no appraisal requirements in certain cases, making it easier for underwater homeowners to refinance
5) The program had eligibility limits, including loan-to-value ratios and mortgage history requirements
6) HARP helped borrowers avoid foreclosure by making refinancing more accessible to those with declining home values
7) Fees and closing costs could often be rolled into the new loan, reducing the upfront financial burden
8) While HARP ended in 2018, it provided a model for future refinancing programs designed to help underwater homeowners
5) VA loans do not require mortgage insurance, which can save borrowers money on their monthly payments
6) VA loans have flexible credit requirements, which can help borrowers with less-than-perfect credit still qualify for a mortgage
7) VA loans can be used to purchase a variety of property types, including single-family homes, multi-unit properties, and condominiums
8) VA loans allow for options for refinancing, including streamline refinancing and cash-out refinancing, which can help borrowers lower their monthly mortgage payments or access equity in their home.
Disclaimer: Johnnie Fleming, NMLS #1177346 – NEXA Mortgage ("LD," "We," "Us," "Our") is exempt from mortgage and NMLS licensing for the states we lend in. Our loan products require a business purpose, and the property must be used as a non-owner-occupied investment property, also known as a rental property. Our rates, loan terms, and loan conditions are only offered to qualified borrowers, and may vary based on loan product, credit score, real estate investment experience, deal structure, property state, and several other applicable considerations. Our rates, loan terms, and quotes, are subject to change daily, at any time, with or without notice. Loans requiring less documentation may result in a higher interest rate and higher annual percentage rate ("APR").
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