You Might Be Eligible for HARP and Not Even Know It

That’s right, the Home Affordable Refinance Program, or HARP was originally introduced back in

2009 as a way for homeowners to take advantage of lower interest rates that wouldn’t otherwise qualify, primarily due to the property value being too low compared to the amount owed on the home. With a traditional refinance, there needs to be at least a 10% equity position. On a home valued at $100,000, the refinanced loan cannot be greater than 90% of that value, or $90,000. HARP took care of that, at least for some, by allowing the refinanced loan to be no greater than 125% of the current market value.

That certainly helped millions of borrowers but there were several million more who were turned down or otherwise couldn’t qualify. Why? Their homes were way, way underwater. Far beyond the 125% mark. Still many other borrowers didn’t meet the lender’s credit score requirements. Yet Congress knew that lowering the monthly payment on someone’s mortgage would free up extra cash which could be pushed right back into other goods and services, improving the economy. In 2011, the second version of HARP was introduced. There were several changes but the most significant adjustments were the removal of the 125% cap and no credit score requirement.

Over the course of the next 12 months, more people refinanced using the new and improved HARP compared to the previous two years. But there are still those out there who can take advantage of the program but for some reason they aren’t. How many? Recent reports indicate there are close to another 1 million homeowners. Are you one of them?


Interest rates are still very, very low and there are some guidelines the borrowers must adhere to but the program is probably one of the easiest loans to qualify for in today’s environment and you don’t have to use the same lender you used last time around. If you think lower rates and saving interest on your current loan is a good idea but not sure if you can qualify, it’s time for us to talk.

If you need more information or help please contact us: (855)399-0959

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