The Home Affordable Refinance Program or HARP came as a boon to many homeowners who were seriously upside down with their mortgage loans. Thanks to this refinance program, many of them could switch to a lower cost loan and reduce their debt burden quite significantly. According to, about a million homeowners benefited from the HARP program between 2009 and 2011. However, the 125% LTV limitation prevented many others from taking full advantage of this refinancing option. To address this gap, the HARP 2.0 was launched later as the improved version of this program, prompting many beleaguered homeowners to contact mortgage lender companies immediately to learn about these loans.

No more 125% LTV restrictions

The most significant difference between the HARP 2.0 and the earlier version is that the 125% LTV restriction no longer applies. In states where the housing crash had particularly devastating impact, this comes as a huge relief to homeowners. This is because in such locations many homes have an LTV that is significantly lower than what is owed by the property owner on the house.

Open to more borrowers

The HARP 1.0 was indisputably a lifeline to many homeowners but an entire category were still left out of the pool because of one simple limitation. These refinance options were not open to owners who had mortgage insurance. The HARP 2.0 has no such restrictions and this means more borrowers can leverage the program to enjoy the benefits of this loan scheme.

The lender liability clause set aside

Encouraging better participation and involvement from lenders, the HARP 2.0 is definitely a more mortgage industry friendly option than its predecessor. The lender liability clause of the previous HARP version has been eliminated in this one, freeing the new lender from any liability for anomalies, risks and problems with the first loan.
Many of the basic requirements for the HARP loan remain unchanged though and this makes the program easier to follow for those homeowners who are already familiar with the HARP 1.0 version. Contact mortgage lender today to know if you can apply for this loan and refinance into a less burdensome mortgage on your home.

For more information or questions about refinancing,
Please visit


Popular posts from this blog

August 18 - Why An Adjustable Rate Mortgage Can Be Beneficial

August 11 - The Benefits of an FHA Cash Out Refinance