Home Affordable Refinance Program (HARP 2.0)


HARP stands for Home Affordable Refinance Program, an initiative from the Federal Housing Finance Agency (FHFA) to assist homeowners whose homes are now worth less than what they owe. Starting in January 2014, new enhancements to the program were made available, making refinancing options possible for millions of  distressed homeowners, even if you are less than 1 year from a bankruptcy discharge date or loan modification end date. HARP applies to primary residences, second/vacation homes and investment/rental properties. 

If the current marketplace "loan-to-value" (LTV) requirements and need for a new appraisal have made it difficult or impossible for you to refinance at today's record low interest rates, Affordable Home Loans may be able to help you without needing a new appraisal or meeting previous LTV requirements.



You may be eligible for HARP if:

  1. The mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae.  If you do not know this, contact our HARP Specialist at Affordable Home Loans, who can assist you with obtaining this information.
  2. The mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.
  3. The mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009.
  4. The current loan-to-value (LTV) ratio must be greater than 80%.
  5. The borrower must be current on the mortgage at the time of the refinance, with no late payment in the past 6 months and no more than one late payment in the past 12 months.
  6. Minimum FICO credit score of 620 (with rate/pricing incentives for FICO scores of 720 or more). 
  7. DTI - Debt to Income Ratios of no more than 45% (requirements vary)
  8. If you have a second trust or HELOC (Home Equity Line of Credit), and it is secured by Fannie or Freddie, that lender MUST agree to resubordinate their lien.  (Second trust of up to $150,000 are auto-subordinated in the Commonwealth of Virginia.)  If the second mortgage is not securitized by Fannie or Freddie, that lender will need to approve a "Re-Subordination" Agreement that will be recorded with your new deed of trust at the time of settlement.  There are NO limits to CLTV (Combined Loan to Value) with the new HARP 2.0 program.


If you answered YES to these questions, contact a HARP specialist at 540-424-5700 to start your refinance today!