The Home Affordable Refinance program allows borrowers to refinance into a 30- or 15-year fixed rate loan even if they owe more on their mortgages than their homes are worth.

Who qualifies for the Home Affordable Refinance program?

  • The home must be an owner-occupied primary residence.
  • The borrower does not have an FHA, VA or USDA loan
  • The borrower must have a mortgage loan owned or securitized by Fannie Mae or Freddie Mac.
    1. To find out if your loan is owned or securitized by Fannie Mae, call (800) 7FANNIE or visit Fannie Mae's website.
    2. To find out if your loan is owned or securitized by Freddie Mac, call (800) FREDDIE or visit Freddie Mac's website.
  • The borrower must be current on mortgage payments and have not been more than 30 days late making a payment over the last year.
  • The borrower owes more than the home is worth, but the mortgage does not exceed 125 percent of the current market value of the home.
  • The refinance will improve the long-term affordability or stability of the borrower's mortgage.
  • The borrower must have income sufficient to make payments under the new loan terms.

Who does NOT qualify for the Home Affordable Refinance program?

  • Investors
  • Borrowers who are currently delinquent on their mortgage payments
  • Borrowers who have loans that are not owned by Fannie Mae or Freddie Mac
  • Borrowers whose first mortgage on the home exceeds 125 percent of the current market value of the property
  • Borrowers who do not have enough income to afford the new mortgage payments

Are there any costs and fees associated with the Home Affordable Refinance program?
Borrowers may be required to pay lender fees, points, and other closing costs.

Can I get cash out to pay other debts?
No. However, borrowers may be eligible to finance all closing costs through the refinance if there is sufficient equity.

When does the Home Affordable Refinance program expire?
The Home Affordable Refinance Program expires on June 30, 2012. Your refinance under HARP must have a mortgage note date on or before that date.

What are my options if I don't qualify for the Home Affordable Refinance program?
Borrowers who do not qualify should work with their lenders to discuss other options (e.g. standard refinancing, loan modification, etc.).

For details about the Home Affordable Refinance program, including eligibility, benefits, and how to apply, see http://www.makinghomeaffordable.gov/programs/lower-rates/Pages/harp.aspx.