Get Approved for a HARP Loan with Quicken Loans

Home Affordable Refinance Program® and HARP® are registered trademarks of the Federal Housing Finance Agency (FHFA). MortgageCalculator.org is not associated with FHFA or any government program. Official information about the Home Affordance Refinance Program (HARP) is located at http://www.HARP.gov.

In 2008 the housing bubble burst, and this caused home prices to go into a free fall. By the time all was said and done, many homeowners found themselves with a house whose mortgage was now higher than the total value of their home. If these homeowners tried to refinance their properties with the new lower interest rates, they found themselves getting turned down. They were turned down because almost all lenders require a loan-to-value ratio on a property to be 80% or lower to qualify for refinancing without adding on private mortgage insurance.

For example, if a house was bought at $160,000 but was now only worth $100,000 after the housing bubble collapse, and the owner currently owes $120,000 on the original mortgage, the loan-to-value ratio is 120%. By adding private mortgage insurance, most homeowners found the value of refinancing null and void.

This is where the Home Affordable Refinancing Act (HARP) comes in. We will go over what this program is, how it works, who is eligible for financing, any changes to the current program, and more. Youll leave with a very good understanding of this program, and you should have a good idea if this is an option you should pursue or not.

The Home Affordable Refinance Program, better known as HARP, was introduced in 2009 to help homeowners who owed more on their mortgages than their homes were worth. HARP allowed these “underwater” borrowers to refinance their mortgages at today’s lower interest rates, even with little to no home equity.

As one of the nation’s largest mortgage lenders, Quicken Loans has helped tens of thousands of borrowers take advantage of HARP to lower their mortgage payments. If you currently have a mortgage backed by Fannie Mae or Freddie Mac, you may still qualify for a HARP refinance from Quicken Loans before the program expires on December 31, 2018.

What is HARP?

The Housing and Economic Recovery Act of 2008 authorized HARP to help homeowners hurt by plummeting home values during the subprime mortgage crisis. HARP relaxed the refinancing rules for borrowers with mortgages owned or guaranteed by Fannie Mae or Freddie Mac.

Normally lenders require at least 20% equity to refinance a mortgage. But HARP allowed homeowners to refinance with loan-to-value (LTV) ratios above 80%, eliminating the need for private mortgage insurance (PMI). This opened up refinancing to millions of underwater homeowners.

Initially slated to expire in June 2011, HARP was extended several times before the current December 31, 2018 end date. To date, HARP has helped over 3.4 million borrowers refinance their home loans.

HARP Eligibility Requirements

To qualify for a HARP refinance from Quicken Loans, your current mortgage must meet these basic eligibility criteria:

Your mortgage must be owned or guaranteed by Fannie Mae or Freddie Mac. You can verify this by checking the MBS lookup tools for Fannie Mae or Freddie Mac.
Your mortgage must have been originated on or before May 31, 2009.
Your mortgage payments must be current, with no late payments in the past six months and no more than one late payment in months 7-12.
Your mortgage must have a loan-to-value ratio above 80%.
The mortgage must be for your primary residence, a second home or an investment property with up to four units.

In addition, your credit report, income, expenses and assets will be reviewed to determine if you qualify for a new mortgage under current underwriting guidelines.

HARP Loan Process with Quicken Loans

The process of getting approved for a HARP refinance through Quicken Loans is straightforward:

Pre-qualify: Complete a short online form to get pre-qualified. A mortgage banker will contact you the same day to review your eligibility.
Apply: Submit a complete loan application with all required documents. Your mortgage banker will guide you through this process.
Underwriting: Quicken Loans will evaluate your income, assets, debts and credit to determine if you meet the requirements for a new mortgage.
Approval: Once approved, you’ll receive a closing date and instructions to finalize the refinance.
Closing: After signing final loan documents, the refinance will be complete!

From start to finish, expect the process to take 30-45 days on average. Quicken Loans strives to provide a smooth, efficient home loan experience. Their team of mortgage bankers is available seven days a week to answer any questions you have along the way.

Benefits of Refinancing with Quicken Loans and HARP

Refinancing into a new mortgage with Quicken Loans through HARP offers many advantages:

Lower interest rate: Interest rates are still near historic lows. HARP lets you refinance at today’s lower rates.
Lower monthly payment: A lower rate directly translates into a lower monthly mortgage payment.
Shorter loan term: You may qualify to shorten your repayment term to 15 or 20 years to pay off your mortgage faster.
Cash out: A cash-out refinance allows you to tap home equity for other uses like home improvements.
Fixed rate: You can switch from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage for stability.
Improved credit: On-time payments can help improve your credit score over time.
Equity building: As home values rise, more of your payment goes toward building equity.
Tax benefits: Mortgage interest and property taxes are tax deductible.

Check your new payment and see instant pre-approval offers from Quicken Loans now. There’s no impact to your credit score to see if you may qualify for cost-saving refinancing.

Alternatives with the End of HARP

After December 31, 2018, HARP will end and no longer be available. However, Fannie Mae and Freddie Mac are both launching enhanced loan modification programs in 2019 to replace HARP.

Fannie Mae High LTV Refinance Option

Fannie Mae’s new High LTV refinance option debuts January 2019. It allows borrowers with existing Fannie Mae loans to refinance with LTVs as high as 97%. You must meet eligibility criteria such as:

Loan originated on or before October 2017
No late payments in past 6 months
At least 12 months seasoning for cash-out refinances
Refinance results in reduction of interest rate and/or term

Freddie Mac Enhanced Relief Refinance Program

Similarly, Freddie Mac will offer the Enhanced Relief Refinance program starting January 2019. Key requirements include:

Existing Freddie Mac-owned loan
Loan originated before June 2018
On-time payments last 12 months
Meets current credit underwriting requirements
New rate at least 0.5% below existing rate

Check back frequently, as Quicken Loans plans to offer both new programs in early 2019.

Is it Time for You to Refinance with HARP?

Don’t miss this last chance to lower your mortgage payment with a HARP refinance from Quicken Loans before this program disappears forever. If you currently have a high LTV mortgage owned by Fannie Mae or Freddie Mac, see if you qualify for HARP now.

With Quicken Loans, the process is fast, easy and convenient. Their mortgage bankers will guide you from start to finish. Contact them today to review your options at no cost or obligation.

People Who Would Not be a Good Fit for the HARP Program

On the opposite side, there are several people that the HARP program would not be a good fit for. If youre behind or in default on your mortgage, you wont be qualified for this loan program. A few other examples would be:

The homeowner missed more than one mortgage payment in the last 12 months
Theyve already refinanced with this program once before
The original mortgage isnt through Freddie Mac or Frannie Mae
The loan-to-value ratio is below the 80% mark

Difference Between the HARP, HAFA, and HAMP Programs

As weve stated above, the HARP loan is for someone who is current on their Frannie Mae or Freddie Mac mortgage with no one very few missed payments. HARP is a total refinance program, which will help to lower interest rates and give a more affordable mortgage payments. The eligibility criteria are listed above.

The HAMP program was designed to help homeowners who are in danger of defaulting on their current mortgage adjust and modify it without a total refinance. For example, they may be able to extend your loans repayment term, lower your interest rate, put your payments in forbearance, or switch from an adjustable interest rate to a fixed interest rate. You must meet the following criteria to be considered eligible for this program:

The home must be your primary, personal residence. Any rental or investment properties are not allowed.
Your mortgage must have an origination date on or before January 1, 2009.
You will have to prove financial hardship like a loss of employment, disability, medical expenses, or an increased mortgage.
Your current mortgage for a single-family home must be under $729,750. If you have two to four unit properties, a higher balance will be allowed.
All of your mortgage expenses like insurance, property taxes, principal, interest, and home owners association payments must be higher than 31% of your pre-tax monthly income.

The HAFA program is considered a last resort for homeowners who have defaulted on their mortgages are about to be foreclosed on. This program was brought about after thousands of homeowners simply walked away from their properties and didnt qualify for the HARP or HAMP programs. You can make a short sale for less than is due on the property, or you can arrange a deed in lieu of foreclosure. Choose this option, and you transfer the property deed or title to the lender, and they accept this as payment for your mortgage. The eligibility requirements are:

The homeowner has documentation to support a financial hardship claim.
There have been no new home purchases within the last year.
Your first mortgage cost is less than $729,750.
The mortgages origination date is on or before January 1, 2009.
The borrower has not been convicted of a felony larceny, fraud, forgery, theft, tax evasion, or money laundering related to mortgages or real estate within the last ten years.
The homeowner does not qualify for either the HARP or HAMP programs.
You qualified for the HAMP program but missed two payments in a row.

The original HARP program quietly underwent a few key changes to allow more people to be eligible. The re-branded name for the HARP program is HARP 2.0. This program is aimed at homeowners who owe more on their current mortgages than their homes are worth, and they cant get financing anywhere else.

Refinance With Harp and Start Saving

FAQ

Is the HARP program still available?

The program has since ended, but it was intended to provide relief after the financial crisis of 2008. HARP was created to help underwater and near-underwater homeowners refinance their mortgages due to falling home prices.

Is the HARP program legitimate?

The Bottom Line While HARP didn’t decrease the amount they owed, borrowers benefited from lower interest rates and monthly payments. Although the program no longer exists, Fannie Mae and Freddie Mac continue to offer refinancing options for borrowers.

Who qualifies for the HARP refinance program?

HARP is for borrow- ers whose loans are owned by Freddie Mac or Fannie Mae. HARP targets borrowers with high loan-to-value (LTV) ratios and who have limited delinquencies over the 12 months before refinancing.

When did HARP loans end?

HARP allowed these homeowners to refinance their mortgages under more favorable interest rates. The program officially launched on April 1, 2009, and ended on December 31, 2018. HARP was the government’s proactive response to the pervasive mortgage troubles that resulted from the Great Recession.

What is a HARP loan?

As we’ve stated above, the HARP loan is for someone who is current on their Frannie Mae or Freddie Mac mortgage with no one very few missed payments. HARP is a total refinance program, which will help to lower interest rates and give a more affordable mortgage payments. The eligibility criteria are listed above.

How do I get a HARP loan?

Your mortgage must have a current loan-to-value ratio of over 80%. This means that your home mortgage’s current amount is 81% or more of your home’s value. The first thing you have to look at is your current mortgage and your payment history. To be eligible for the HARP program, you must be current on your mortgage payments.

Is the HARP loan too good to be true?

Since its 2009 inception, the Home Affordable Refinance Program (HARP) has helped more than 3.3 million U.S. households to refinance. The program could help hundreds of thousands more households, too — if only more homeowners would apply. For whatever reason, some U.S. homeowners think the HARP loan is “too good to be true.”

What is a harp mortgage refinance?

Over the last 8 years, the HARP mortgage refinance has helped to support the U.S. economy and saved homeowners billions of dollars in mortgage payments, collectively. Homeowners who have lost home equity have used HARP to refinance to today’s mortgage rates without incurring new mortgage insurance.