How to Qualify for the HARP Refinance Program
Learn the essential steps to qualify for the HARP refinance program. Discover how homeowners with little or no equity can access lower interest rates and better loan terms without a credit score minimum. The guide covers eligibility criteria, documentation needed, and the application process to help you navigate refinancing efficiently.
If your home’s equity is limited, or if you owe more on your mortgage than your property is worth, securing refinancing can be challenging. The HARP program offers a helpful solution for homeowners who have never missed a mortgage payment and whose loans are held by Freddie Mac or Fannie Mae.
The Home Affordable Refinance Program (HARP) was launched in 2009 by the Federal Housing Finance Agency to promote affordable homeownership. It allows qualifying borrowers with little or no equity to refinance into more manageable mortgage options without needing extra mortgage insurance.
HARP is designed for borrowers with a loan-to-value ratio at or below 80%, and who have maintained minimal or no missed payments over the past year. Over the years, several updates have simplified qualification criteria; for example, appraisal requirements have been waived in certain cases, and risk fees associated with shorter loan terms have been removed.
This program does not require a minimum credit score, and it allows borrowers to benefit from low interest rates and the option to switch from adjustable-rate to fixed-rate mortgages.
After confirming your eligibility for a HARP refinance, you will undergo the typical application, approval, and closing process for your mortgage.
Follow these steps to assess whether HARP is suitable for your financial situation:
Step 1
Collect your financial documents, including mortgage statements for all loans, and proof of income.
Step 2
Contact your current mortgage provider to ask if they work with approved HARP lenders. Your lender may already have your loan details, but you might need to provide income verification.
After gathering this information, visit the official HARP website to find approved lenders. They can confirm your eligibility and guide you through the process.
Step 3
If approved, proceed with the application and closing procedures. If you are denied, consult a HARP specialist who can suggest alternative options to qualify for the program.
