You may be asking yourself: how can the HARP 2 program help me?  Well, if you qualify for the HARP 2 program, there are many benefits.  The HARP 2 program is designed to help homeowners refinance their homes who are underwater.  Being ‘underwater’ means your mortgage is worth less than your home value.  So for example, you owe $200,000 on your mortgage and your home is worth only $180,000.  Hence, you’re underwater by $20,000.  Normally, you cannot refinance a home where you owe more than what your home is worth.

Thanks to the HARP 2 program as well as other underwater refinance programs such as the FHA Streamline and VA Streamline refinance programs, underwater homeowners can now refinance to a lower rate and thus lower their mortgage payment.

Am I eligible for HARP 2?

To be eligible for HARP 2, your loan must be owned by Fannie Mae or Freddie Mac.  One of those institutions must have purchased your loan before June 1, 2009. This is known as the HARP 2 cutoff date.  You must also be current on your last 6 months of payments and can have been late on one payment for the past 12 months. Some people don’t know if they have been late so it’s always good to check with a mortgage broker to determine this.  If you meet these qualifications, you should check further eligibility to see how much you can save should you decide to move forward with HARP 2.

Other questions and answers to the HARP 2 program:

Can I consolidate mortgages with a HARP refinance?

Quick Answer: No


What happens to my second mortgage when I refinance my first mortgage using HARP 2.0?

Quick Answer: Second Mortgage is subordinated

My second mortgage isn’t backed by Fannie Mae or Freddie Mac. Is that a problem?

Quick Answer: No – that doesn’t matter.  It’s only the first mortgage that matters.

Click on the link for more information on HARP 2 Frequently Asked Questions

To see if you’re eligible for HARP, call your mortgage broker or you can check by clicking here.