(HARP) Home Affordable Refinance Program was designed to assist underwater homeowners refinance their home in to a better mortgage program. It offers a standard fixed rate mortgage typically at a lower interest rate.

Requirements & Fees

• Your loan must be owned by Fannie Mae
• Fees of up to 2% may be applied by lender for mortgage terms greater than 30 years.
• Fees of up to 1.5% may be applied by lender for mortgage terms greater than 15 years.

Eligibility Requirements

Cash-out refinance transactions must meet the following requirements:

• The existing mortgages need to be paid off.
• Continuity of obligation must be demonstrated.
• Properties listed for sale in the 6 months preceding the application date for new financing are limited to 70% LTV/CLTV/HCLTV ratios (or less if mandated by specific product/occupancy/property type; i.e., 65% for manufactured homes). Note: Properties that were listed must have been taken off the market on or before the application date.
• You must have had your current mortgage at least six months.

This topic contains information on limited cash-out refinance transactions, including:

Eligibility Requirements

Limited cash-out refinance transactions must meet the following requirements:

The transaction is being used to pay off an existing first mortgage, including the payoff of a subordinate lien used to purchase the property by obtaining a new first mortgage secured by the same property.

• Continuity of obligation must be demonstrated (see B2-1.2-04, Continuity of Obligation).
• The subject property must not be currently listed for sale. It must be taken off the market on or before the application date, and the borrowers must confirm their intent to occupy the subject property (for principal residence transactions).