HARP 2 Closings Hit All-Time Low As Mortgage Rates Drop, Home Values Rise

HARP 2: Home Affordable Refinance Program loans as a percentage of all conforming refiannce

Fewer than 17,000 HARP 2.0 loans closed in May 2014, the fewest in any one month in more than two years.

Fewer HARP closings doesn't diminish the program's importance, however. In many states, HARP loans still account for more than one-fifth of all refinance activity; plus, more than 3.1 million HARP loans have closed nationwide.

The Home Affordable Refinance Program remains an important part of today's U.S. mortgage market.

Click to get today's HARP mortgage rates.

Qualification Standards For HARP

The Home Affordable Refinance Program (HARP) is a government refinance program meant to help homeowners whose homes have lost value since purchase.

HARP was initially launched in 2009 as part of the Making Home Affordable initiative, a program which also launched the Home Affordable Modification Program, better known as HAMP.

The primary difference between the HARP and HAMP programs is that the Home Affordable Refinance Program is meant for homeowners who are current on their respective mortgages (i.e. not late on payments).

HAMP is for homeowners facing foreclosure, or whom are otherwise delinquent on their home loan.

HARP is often called the "Obama Refi", and it's backed via Fannie Mae and Freddie Mac exclusively. HARP's Fannie Mae version is called "Refi Plus". Freddie Mac's version is called the "Relief Refinance". These are brand names of the same mortgage product.

The qualification standards for the Home Affordable Refinance Program are low :

  1. Your loan must have been securitized by Fannie Mae or Freddie Mac
  2. Your loan must have a note date of no later than May 31, 2009
  3. You may not have previously used the HARP program to refinance

In addition, your mortgage payment history must be perfect for the last 6 months with no more than one late payment in the last 12 months.

Click here to compare today's rates.

 

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