• Is HARP 2.0 Right for You and How to Qualify

    December 17, 2014
  • The Home Affordable Refinance Program 2.0 (HARP 2.0) is a federal program designed to help homeowners to refinance their mortgage even if they are “underwater.” The term “underwater” is used in the mortgage industry to indicate a mortgage where the loan holder owes more on their loan than the house is worth on the current market. In 2009, the original HARP program was created to help “underwater” or “near-underwater” homeowners who were having difficulty refinancing their home loans. In December 2011, the program was expanded in order to help a wider group of homeowners. After the expansion, the program was known as HARP 2.0. 

    According to HarpProgram.org, “In an effort to enable more struggling homeowners to take advantage of the Home Affordable Refinance Program, we have extended the application deadline of the program to December 31, 2015. HARP has also expanded the eligibility criteria for MHA to be able to offer assistance to more struggling homeowners.” 

    HARP 2.0 Eligibility Requirements

    So, how do you know if you qualify for HARP 2.0? Let’s look at the current eligibility requirements and find out. 

    • Fannie Mae or Freddie Mac must own or guarantee your current loan.
    • Your mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.
    • You cannot have refinanced under HARP previously unless it is a Fannie Mae loan refinanced under HARP from March 2009 - May 2009.
    • Your loan must be on your primary residence, a 1-unit second home, or a 1- to 4-unit investment property.
    • Your current loan-to-value (LTV) ratio must be higher than 80%.
    • You must be current on your mortgage at the time of refinancing with a good payment history over the previous 12 months. 

    If you qualify under the current eligibility requirements, HARP 2.0 could be right for you. Don’t wait until it’s too late to look into this program. Here at The Mortgage Specialists, we have expert Mortgage Planners who can help you determine if HARP 2.0 is right for you. Contact us today to learn more!


    1 http://harpprogram.org/

    2 http://www.makinghomeaffordable.gov/programs/lower-rates/Pages/harp.aspx

    3 http://www.harp.gov/Eligibility