Harp Guidelines

Since the start of the Home Affordable Refinance Program (HARP) in 2009, millions of people have tried to get a Harp loan , hoping to lower their monthly mortgage payment. But.. only approximately 200,000 homeowners managed to get a harp loan! Why do some home owners qualify and others don’t?

I’m going to share some harp guidelines to offer some understanding of this Obama loan modification program. Further I try to explain what you can do to increase your chances to refinance with a harp loan.

First of all,  let’s see what factors makes a refinance a HARP refinance.

The first rule of the Harp Guidelines is this: Only mortgages that are backed by Fannie Mae or Freddie Mac can qualify for the Harp Program.

Most mortgages, including HARP loans, follow the approval guidelines of Fannie Mae or Freddie Mac. Refinancers that are hoping for a Harp loan, need to qualify based on their proven ability to repay and their credit history.

The difference with the HARP guidelines is that Fannie and Freddie made their mortgage approval guidelines easier to help struggling homeowners who have experienced a decrease in their home’s market value.