The HARP Program Has Ended - What Replaced It

Written by the SiFinances Editorial Team · How we research and review our content

HARP (the Home Affordable Refinance Program), sometimes called the Obama Refinance Program, officially ended on December 31, 2018. No new HARP applications are being accepted. If you are looking to refinance a mortgage with little or no home equity today, skip to the "What replaced HARP" section below for the programs that took its place.

HARP was a government-backed program created to help homeowners refinance after the 2007-08 financial and housing crisis, when millions of borrowers owed more on their mortgage than their home was worth (negative equity) and could not qualify for a standard refinance.

From its launch through the end of 2018, HARP underwent several changes to its eligibility requirements. Some of its key features were:

• Flexibility: The amount of equity in the home did not disqualify a borrower the way it would with a conventional refinance.
• Reduced restrictions: Lending criteria were less restrictive than other refinance options, so approval odds were higher for eligible borrowers.
• More affordable refinancing: Caps on certain fees kept closing costs down, and some fees could be rolled into the new loan.
• Preserved mortgage insurance terms: Homeowners generally kept the same mortgage insurance terms they already had, instead of being charged a new, higher rate.

Eligibility for HARP, before it ended, generally required:

• A mortgage guaranteed or owned by Fannie Mae or Freddie Mac.
• A loan-to-value ratio (LTV) of 80% or higher, meaning the program was aimed at borrowers with little or negative equity rather than those with substantial equity already.
• A mortgage that originated on or before May 31, 2009.
• An up-to-date payment history, with no late payment of over 30 days in the past six months and no more than one such late payment in the past year.
• The refinanced property had to be a primary home, a second single-unit residence, or a 1-to-4 unit residential investment property.

Since HARP ended, Fannie Mae and Freddie Mac each introduced their own high-LTV refinance options for borrowers with little or no equity who don't qualify for a standard refinance, along with income-limited options aimed at lower-income borrowers seeking a lower rate or payment. Because eligibility rules and terms for these programs can change, the most reliable way to check what you currently qualify for is to contact your mortgage servicer directly, or review the current guidance from the Consumer Financial Protection Bureau. If a standard refinance isn't a fit because of limited equity, ask your servicer specifically whether you qualify for a high-LTV refinance option.