A Brief Summary: What Was HARP?
HARP was an acronym for the Home Affordable Refinance Program. It was meant to allow qualified borrowers to refinance their home mortgages even when they had little or no equity—or were completely underwater.
The objective? Reduced monthly payments and reduced interest rates without flawless credit or conventional loan-to-value standards. It was easy in theory, but revolutionary in application.
If you were paying your mortgage on time, you were a contender—no matter how low the value of your house had fallen.
What Replaced It?
Once HARP lapsed, Fannie Mae and Freddie Mac followed suit with similar programs:
- Fannie Mae's High LTV Refinance Option (HIRO)
- Freddie Mac Enhanced Relief Refinance (FMERR)
These initiatives took up where HARP had left off, providing refi opportunities to homeowners with high loan-to-value profiles. But the caveat: they didn't last long either. Because of light usage and shifting market conditions, both initiatives were closed down or shortened within a few years.
So now, we don't have an exact one-to-one substitute. But that doesn't leave you with nothing.
Low or No Equity Borrower Current Options
Even without HARP mortgage loan or its direct successors, there can still be potential alternatives to refinance:
1. FHA Streamline Refinance:
If you currently have an FHA loan, this is one of the simplest refi options—even if you're underwater. No appraisal in most cases, and credit standards are loose.
2. VA IRRRL (Interest Rate Reduction Refinance Loan):
For active-duty personnel or veterans who have a VA loan, the program provides a fast refi with little paperwork—even if your house has declined in value.
3. Portfolio Lenders & Hard Money Refinance:
Some alternative lenders will provide refi alternatives for extraordinary situations, including high LTV cases or investment homes. These have different terms, so it is well worth shopping around.
What Lenders Are Seeking Currently
While equity is still most crucial, lenders today are more lenient than you may think—especially if you:
- Have a steady source of income
- Made timely payments in the last 12+ months
- Are refinancing a principal residence
Even if you're not a textbook borrower, the right lender can be the game-changer. Sometimes the right conversation unlocks the door to custom solutions that don't fit cookie-cutter guidelines.
What You Can Do Next
If you're trapped in your existing mortgage and believe you've lost your window with HARP, it's time to take another look. Market conditions today are not what they were then, and maybe there's more room to maneuver than you think—particularly if you're willing to refinance with other options or specialty lenders.
Don't believe you've used up all your options because HARP mortgage loan has shut down shop. Things have been rearranged, but there is assistance out there. It's just that you might not know where.
About Us
We are a group of property mortgage experts. We also write informative content on various types of mortgages and different complex aspects of mortgages to help prospective homebuyers and purchasers of commercial properties.