Home Affordable Refinance Program (HARP)

AAA

DEFINITION of 'Home Affordable Refinance Program (HARP)'

A mortgage-refinancing program offered by the Federal Housing Finance Agency to homeowners who own homes that are worth less than the outstanding balance on the loan. Homeowners eligible for Home Affordable Refinance Program (HARP) loans have mortgages owned or guaranteed by either Freddie Mac or Fannie Mae that were sold to either Fannie or Freddie before May 31, 2009.

INVESTOPEDIA EXPLAINS 'Home Affordable Refinance Program (HARP)'

The 2008 financial crisis affected real estate values across the United States and led to some homeowners being underwater or near-underwater on their loans.To help homeowners refinance and avoid foreclosure, the federal government launched HARP in 2009.

The loan is available to homeowners who are current on their mortgage payments, thus excluding those who are already in foreclosure or have walked away from their properties due to negative equity. Homeowners can refinance through their existing lender or through a different lender participating in HARP. The program is available for properties that are primary residences, as well as for second homes and investment properties.

RELATED TERMS
  1. Fannie Mae - Federal National Mortgage ...

    A government-sponsored enterprise (GSE) that was created in 1938 ...
  2. Refinance

    1. When a business or person revises a payment schedule for repaying ...
  3. Commercial Real Estate Loan

    definition of a commercial real estate loan
  4. Realtor Property Resource (RPR)

    A National Association of Realtors member benefit providing realtors ...
  5. Housing Choice Voucher Program

    The Housing Choice Voucher Program helps families with very low ...
  6. Forbearance

    A temporary postponement of mortgage payments.
Related Articles
  1. How Fannie Mae And Freddie Mac Were ...
    Economics

    How Fannie Mae And Freddie Mac Were ...

  2. Fannie Mae and Freddie Mac, Boon Or ...
    Insurance

    Fannie Mae and Freddie Mac, Boon Or ...

  3. The Home Appraisal: Your Key to a Successful ...
    Home & Auto

    The Home Appraisal: Your Key to a Successful ...

  4. 6 Questions To Ask Before You Refinance
    Home & Auto

    6 Questions To Ask Before You Refinance

Hot Definitions
  1. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  2. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  3. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  4. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
  5. Parity Price

    When the price of an asset is directly linked to another price. Examples of parity price are: 1. Convertibles - the price ...
  6. Earnings Multiplier

    An adjustment made to a company's P/E ratio that takes into account current interest rates. The earnings multiplier is used ...
Trading Center