In 2009, President Barack Obama introduced the Home Affordable Refinance Program (HARP) as part of the Making Home Affordable program. HARP was created to assist responsible borrowers who can’t refinance with a conventional loan because the value of their home is less than what they owe.
Shortly after HARP was introduced, a second iteration, HARP 2.0, was rolled out to homeowners.
There are two key differences between the original HARP and HARP 2.0
- HARP 2.0 allows borrowers with mortgage insurance to qualify for a refinance. This expanded the program significantly.
- The new loan originator is relieved of responsibility for anything that happened on the underwriting of the first loan, which has made more lenders willing to offer HARP loans.
Another significant feature of HARP 2.0 is the elimination of the Loan-to-Value (LTV) cap for fixed-rate loans.
Homeowners who were previously struggling with their mortgage loan payments are now in a stronger financial position because they have received interest rate reductions and mortgage loan refinancing.
Because you’re not required to go to your original lender to obtain a refinance under HARP 2.0, you can work with any lender. Harbin Loans is a direct HARP lender offering HARP 2.0 refinance loans to homeowners who are eligible. You must have a credit score of at least 620.0