Everything You Need to Know About HARP Loan Application

Greetings, dear reader! If you’re someone who’s been struggling to pay off your mortgage, then the Home Affordable Refinance Program (HARP) might be the solution you’re looking for. In this article, we’ll explain what HARP is, how it works, and how you can apply for it. So, without further ado, let’s dive right in!

What is HARP?

HARP is a government initiative designed to help homeowners who are “underwater” on their mortgages. This means that you owe more on your mortgage than your home is currently worth. HARP allows eligible homeowners to refinance their mortgages at a lower interest rate, which can lead to lower monthly payments and, in some cases, a shorter loan term.

🔍 Did you know? HARP was originally introduced in 2009 and was set to expire at the end of 2018. However, it has since been extended until the end of 2022.

How Does HARP Work?

To be eligible for HARP, you must meet certain criteria:

Your mortgage must be owned or guaranteed by either Fannie Mae or Freddie Mac.
Your mortgage must have been originated on or before May 31, 2009.
You must be current on your mortgage payments, with no late payments in the past six months and no more than one late payment in the past 12 months.
Your loan-to-value ratio must be greater than 80%.

If you meet these criteria, you can apply for HARP through a participating lender. The lender will review your application and, if approved, will refinance your mortgage. It’s important to note that HARP does not forgive your mortgage debt, but rather allows you to refinance it at a more affordable rate.

How to Apply for HARP?

If you think you’re eligible for HARP, here are the steps you should take:

Step 1: Gather Your Information

Before you begin the application process, gather all the necessary information, including:

  • Your mortgage statement
  • Your income statement, including pay stubs and tax returns
  • Your bank statements
  • Your property tax and insurance information

Step 2: Contact a Participating Lender

Contact a lender that participates in the HARP program. You can find a list of participating lenders on the Fannie Mae and Freddie Mac websites.

Step 3: Submit Your Application

Submit your application to the lender. They will review your application and let you know if you’re approved for the program.

🔍 Did you know? You don’t have to use your current lender to refinance your mortgage through HARP. You can shop around for the best rates and terms.

Frequently Asked Questions (FAQs)

1. What is the maximum loan-to-value (LTV) ratio for HARP?

The maximum LTV ratio for HARP is 125%, which means that your mortgage debt cannot exceed 125% of the appraised value of your home.

2. Can I apply for HARP if I have a second mortgage?

You may still be eligible for HARP if you have a second mortgage, but it will depend on the lender’s requirements.

3. What if I’m behind on my mortgage payments?

You must be current on your mortgage payments to be eligible for HARP. However, if you’re struggling to make your payments, you may want to look into other government programs, such as the Home Affordable Modification Program (HAMP).

4. How much can I save by refinancing through HARP?

Your savings will depend on your individual circumstances, including your current interest rate, loan term, and credit score. However, many homeowners have been able to save thousands of dollars over the course of their loan term through HARP.

5. How long does the HARP application process take?

The HARP application process typically takes 30 to 45 days, but it can vary depending on the lender.

6. Can I refinance my investment property through HARP?

No, HARP is only available for primary residences.

7. Will I need to get an appraisal?

In some cases, an appraisal may be required as part of the HARP application process. However, if your lender uses certain automated valuation models, an appraisal may not be necessary.

8. Do I need to pay closing costs?

Yes, you will need to pay closing costs when you refinance through HARP. However, some lenders may offer no-closing-cost options, which can help to reduce your upfront expenses.

9. Can I change the terms of my loan when I refinance through HARP?

No, you cannot change the terms of your loan when you refinance through HARP. However, you may be able to refinance into a shorter-term loan, which can help you to save money on interest over the life of your mortgage.

10. What happens if I’m not approved for HARP?

If you’re not approved for HARP, you may want to look into other government programs or options offered by your lender. You could also consider working with a housing counselor, who can help you to explore your options and find the best solution for your situation.

11. Can I apply for HARP more than once?

If you’ve already refinanced your mortgage through HARP, you cannot apply for the program again.

12. Will HARP affect my credit score?

Refinancing your mortgage through HARP can have a minimal impact on your credit score, as long as you continue to make your payments on time.

13. Will I need to provide proof of income?

Yes, you will need to provide proof of income as part of the HARP application process.


In conclusion, HARP can be a great option for homeowners who are struggling to pay off their mortgages. By refinancing through HARP, you could potentially save thousands of dollars over the life of your loan. If you think you might be eligible for HARP, we encourage you to contact a participating lender today.

🔍 Remember, HARP is only available until the end of 2022, so don’t wait too long to explore your options!


The information provided in this article is for informational purposes only and does not constitute financial advice. We strongly recommend that you consult with a qualified financial advisor before making any decisions regarding your mortgage. Additionally, eligibility requirements for HARP are subject to change, so please check with your lender or the government’s HARP website for the most up-to-date information.