HARP Loans: What Replaced the HARP Program?

If you've searched for a HARP loan, you've probably noticed that most of what comes up is old. That's because the Home Affordable Refinance Program, known as HARP, no longer exists. It was a refinance program for homeowners who owed close to or more than their home was worth, and it ended years ago. This article explains what HARP was, what the Federal Housing Finance Agency (FHFA) says about its end, what has been offered in its place, and what to do today if you have little or no equity.

HARP was a federal refinance program aimed at homeowners with Fannie Mae or Freddie Mac loans whose homes had dropped in value, leaving them with little equity or owing more than the home was worth. Ordinary refinance programs generally need some equity. HARP was designed to let borrowers who were making their payments on time refinance anyway.

You'll still see "HARP loan" in search results and sometimes in mailers. If you get an offer that promises a HARP loan today, be careful and verify it, because the program is closed.

Is the HARP loan still available?

No. FHFA says HARP expired in December 2018. Fannie Mae and Freddie Mac then created options for refinancing high-LTV mortgages.

What replaced HARP?

For Fannie Mae loans, the High LTV Refinance Option, which is designed for on-time borrowers whose LTV exceeds the limit for standard limited cash-out refinances. Fannie Mae's Selling Guide says acquisitions under it are currently paused.

Can I refinance if my home is worth less than I owe?

It depends on your loan type, who owns it and what programs are available at the time. Ask me and I'll check the current options for your loan.

Does HARP apply to FHA or VA loans?

No. HARP was for Fannie Mae and Freddie Mac loans. FHA has a streamline refinance and VA has the IRRRL for existing loans of those types.

How do I know if an offer using the HARP name is legitimate?

Treat it with caution. The program is closed, so ask who owns your loan, request a Loan Estimate and never pay a fee upfront to "qualify."