What is the Home Affordable Refinance Program (HARP)?

The Home Affordable Refinance Program is a government program that is designed to help homeowners that may be unable to refinance through traditional methods. When you refinance through a traditional lender, they will want your house to be worth more than you are trying to refinance for. If the value of your home has decreased because of the real estate market, this might make it impossible to refinance as a result. With the Home Affordable Refinance Program this problem can be circumvented in many cases. Here are the basics of the Home Affordable Refinance Program and how it works. 

Program Basics

The Home Affordable Refinance Program is designed for those that want to lower their monthly payments and make things more affordable. With this program you can actually refinance if the value of the mortgage that you are trying to refinance is 125% of the value of the house under current market conditions. This will give you some flexibility in getting approved for your loan.


In order to be eligible for the Home Affordable Refinance Program, you have to have a loan that is guaranteed by Freddie Mac or Fannie Mae. You also have to be the owner of the property and you must be current on your mortgage.