3. Home Affordable Refinance Program (HARP

3. Home Affordable Refinance Program (HARP) Considering how low mortgage rates have fallen in the past year, it is especially frustrating for homeowners who could stand to benefit from refinancing their loans but can’t qualify. The Home Affordable Refinance Program (HARP) is a mortgage relief program for homeowners who are not behind on their mortgage payments, but have an underwater mortgage that has prevented them from qualifying for refinancing. The thought is that by bringing down the cost of financing a home loan, HARP can help underwater mortgage holders gain more control over their loans. HARP Eligibility The Making Home Affordable website states that homeowners may qualify for HARP assistance if they meet the following eligibility requirements: Freddie Mac or Fannie Mae must own or back the loan, or the loan must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009. The mortgage holder has not already refinanced under HARP, unless it is a Fannie Mae loan that was refinanced under HARP between March and May of 2009. The current loan-to-value (LTV) ratio is 80 percent or more. The borrower has not missed a mortgage in the past 12 months and is current on the loan at the time of refinancing. 2013 is the last year the Home Affordable Refinance Program will be available, though a possible “HARP 3.0″ may be created once the current HARP program expires.