Home Affordable Refinance Program
Frequently Asked Questions
- When will lenders begin participation in the enhanced version of HARP?
- How do I know if I’m eligible for HARP?
- Does Freddie Mac own my loan?
- What do I need to do to take advantage of HARP?
- Am I eligible for HARP if my loan is not owned or guaranteed by Freddie Mac or Fannie Mae?
- Per Freddie Mac’s guidelines, I should be eligible for HARP, but my lender says I am not. Why?
- Is HARP the only refinance program available?
- What fees can I expect to be charged under HARP?
- Will refinancing through HARP reduce the principal amount that I owe on my loan?
- Is the "Freddie Mac Relief Refinance MortgageSM" the same as a Home Affordable Refinance Program (HARP)?
- Is there a maximum loan-to-value (LTV) ratio for HARP?
- Is a new appraisal always required for HARP?
- Are mortgages on condominiums eligible for refinance under HARP?
- Is there a benefit for homeowners to shorten the terms of their mortgage?
- Are offers from companies promising to help me get a HARP loan legitimate?
- When will lenders begin participation in the enhanced version of HARP?
Lender participation in HARP is voluntary. Additionally, lenders that choose to participate may adopt HARP at different times due to operational changes and additional program parameters they may establish. As a first step, we encourage you to reach out to the lender to whom you are currently making your monthly mortgage payments to (also referred to as your Servicer) to see if they offer HARP. If your lender does not offer HARP, you may reach out to any of the lenders identified in our list of HARP participating lenders.
- How do I know if I'm eligible for HARP?
In general, you must meet the following criteria to be eligible for HARP through Freddie Mac:
- Your mortgage must be owned or guaranteed by Freddie Mac.
- Your mortgage must have been sold to Freddie Mac on or before May 31, 2009.
- Your current loan-to-value (LTV) ratio must be greater than 80%.
- You must be current on the mortgage at the time of the refinance, with no 30-day+ late payment in the last six months and no more than one in the past 12 months.
It is important that you reach out to your lender to discuss your eligibility for the program. In addition to Freddie Mac’s HARP requirements, lenders participating in the program may have additional and different requirements that you must meet in order to be eligible.
- Does Freddie Mac own my loan?
To find out if Freddie Mac owns your mortgage, visit our secure loan look-up tool. After you submit your information, you will receive an immediate response indicating whether or not Freddie Mac owns your mortgage.
- What do I need to do to take advantage of HARP?
We recommend that you follow these steps to get started with HARP:
- Visit our secure loan look-up tool to see if Freddie Mac owns your loan. If not, contact Fannie Mae at FannieMae.com to see if they own your loan.
- Learn more about HARP
- Get prepared and call your lender
- Am I eligible for HARP if my loan is not owned or guaranteed by Freddie Mac or Fannie Mae?
To be eligible for HARP, Freddie Mac or Fannie Mae must own your loan. However, if your loan is not owned by Freddie Mac or Fannie Mae, we encourage you to explore other refinance options that may fit your needs and discuss your situation with your lender. As a first step, visit the Making Home Affordable website to learn more about other options, particularly if your home has fallen in value or you are struggling to make your mortgage payments.
- Per Freddie Mac's guidelines, I should be eligible for HARP, but my lender says I am not. Why?
Freddie Mac purchases mortgages that meet our requirements from banks and other lending institutions. It is important to know that in addition to Freddie Mac's eligibility requirements for HARP, a lender may establish program parameters in addition to those we that we require. Because these requirements may vary from lender to lender, we do not have the capability to assess a borrower's eligibility for HARP from any specific lender.
- Is HARP the only refinance program available?
HARP is only one of several refinancing options that may be available to you. HARP is unique because it enables homeowners with little to no equity in their homes to take advantage of today’s low interest rates and other refinancing benefits. If you find that you are not eligible for HARP, we encourage you to contact your lender or another lender in your area to explore other refinancing options that meet your specific needs. Also, visit the Making Home Affordable website to learn more about options that can assist you if your home has fallen in value or if you are struggling to make your mortgage payments.
- What fees can I expect to be charged under HARP?
HARP is like any other mortgage where you may be required to pay certain costs for the application, processing, appraisal, title search and other necessary items to complete your refinance.
- Will refinancing through HARP reduce the principal amount that I owe on my loan?
No. HARP is designed to help borrowers get into more affordable loans, but will not reduce the principal amount you owe on your mortgage or any other debt you owe. However, refinancing through HARP or another refinance option can benefit you with a new loan that has more favorable terms such as a lower interest rate that will save you money by reducing your monthly payment and the amount of interest that you pay over the life of the loan.
- Is the "Freddie Mac Relief Refinance MortgageSM" the same as a Home Affordable Refinance Program (HARP)?
A portion of Freddie Mac's Relief Refinance Mortgage offering is our business implementation of HARP. We use the term Relief Refinance Mortgage to describe our requirements and operational processes with lenders and other partners with whom we do business. Lenders may choose to use a different name for this mortgage, and their customer service contacts may only know the mortgage by the name the lending institution uses. The important point is that you speak with your lender about their available refinance options based on your individual situation.
- Is there a maximum loan-to-value (LTV) ratio for HARP?
If you refinance under HARP and your new loan is a fixed-rate mortgage, there is no maximum LTV. If you refinance under HARP and your new loan is an adjustable rate mortgage, your LTV may not be above 105%. To calculate your LTV, divide the outstanding mortgage amount by the approximate value of the home.
- Is a new appraisal always required for HARP?
Not necessarily. We have further streamlined our program requirements for determining property values by allowing the use of our proprietary automated valuation model, Home Value Explorer (HVE) in certain cases. Please consult with your lender to determine if this option is available for your loan.
- Are mortgages on condominiums eligible for refinance under HARP?
Condominiums are already eligible under HARP and, under the enhanced program, condominiums that originally met our requirements remain eligible.
- Is there a benefit for homeowners to shorten the terms of their mortgage?
If you owe more on your mortgage than your home is worth, you may be locked into your home for years and have fewer financial options until you pay down the loan balance. A shorter-term mortgage enables you to pay down the amount you owe much faster than a traditional 30-year mortgage. Furthermore, interest rates on shorter term mortgages usually are less than on thirty-year mortgages. The lower interest rate may provide you the opportunity to shorten the term of your mortgage without much change in your monthly payment, pay less interest over the life of the loan, and perhaps even reduce your payment.
- Are offers from companies promising to help me get a HARP loan legitimate?
Legitimate offers will have specific information identifying your current mortgage, including the loan number your mortgage servicer uses with your mortgage – which is printed on your statement. We recommend you call your lender before responding to third-party companies that advertise themselves as "mortgage experts" or "foreclosure specialists" to apply for a HARP loan.