Enhanced Version of HARP Offers Improved Way to Refinance

If you have tried to refinance but were unable to do so because the value of your home has declined, HARP 2.0 may be just the program you’ve been looking for.

What is it?

The new version of the Home Affordable Refinance Program (HARP) is a refinance program for mortgages that were sold to Fannie Mae or Freddie Mac on or before May 31, 2009. You may not have refinanced your mortgage under any HARP program, unless it was between March and May of 2009.

HARP 2.0 is an enhanced version of HARP 1.0. In HARP 1.0, the maximum loan-to-value ratio was 125%, which sounds good. However, for people living in areas that were particularly hit hard by depressed market values, the program was out of reach of many who wanted it. HARP 2.0 has more liberal ratios.


While some terms of the program are more relaxed, these are still full documentation loans; you need to show income and assets as you would with other type of mortgages. You also must be current on your existing mortgage and have been so for the previous 12 months.

Unlike HARP 1.0, if you currently have mortgage insurance, you may still be able to qualify for HARP 2.0.

Who offers HARP 2.0?

Most lenders offer HARP 2.0, and you don’t have to go to your original lender to use the program. If you would like more details on HARP 2.0, your mortgage professional is a great place to start.