Home Affordable Refinance Program (HARP)

Key takeaways
* HARP was a federal program created after the 2008 financial crisis to help homeowners refinance when their mortgage balance exceeded their home’s value.
* It applied only to loans owned or guaranteed by Fannie Mae or Freddie Mac and ended on December 31, 2018.
* Borrowers who were current on payments (not in default) and whose loans met program criteria could refinance under HARP; other relief options remain available today.

What HARP was

The Home Affordable Refinance Program (HARP) was launched in 2009 by the Federal Housing Finance Agency to allow underwater and near-underwater homeowners to refinance mortgages that otherwise could not be refinanced because the loan balance exceeded the home’s market value. The program aimed to reduce foreclosures and ease the financial burden on borrowers affected by falling home prices.

Eligibility and requirements

HARP refinances were limited to mortgages that met these conditions:
* The mortgage was owned or guaranteed by Fannie Mae or Freddie Mac.
* The mortgage had been sold to Fannie Mae or Freddie Mac before May 31, 2009.
* The borrower was current on mortgage payments (not in default).
* The property was in acceptable condition and occupied (vacated properties were not eligible).
* Any participating lender could originate a HARP refinance; borrowers were not required to work with their existing lender.

Timeline

• Program launched: 2009 (in response to the housing market collapse).
• Program ended: December 31, 2018.

HARP versus Home Affordable Modification Program (HAMP)

Although both programs were part of post‑crisis relief efforts, they served different situations:
* HARP: For borrowers current on their mortgage who needed to refinance despite negative equity.
* HAMP (Home Affordable Modification Program): Targeted borrowers who were in default or at imminent risk of default and sought a modification of existing loan terms. HAMP expired in 2016.
Important distinctions for modifications:
* A modification changes the existing loan terms and must be completed through the borrower’s current lender.
* Modifications can affect credit reports and, in some cases, may create tax implications if debt forgiveness is treated as taxable income by the IRS.

After HARP ended

HARP ended on December 31, 2018. Borrowers who are underwater on their mortgages still have other potential options—such as working with lenders on refinancing or modification alternatives or seeking guidance from housing counselors—but eligibility and availability vary. Contact your mortgage servicer or a HUD‑approved housing counselor to explore current programs and options.

Sources
* Federal Housing Finance Agency — “Home Affordable Refinance Program (HARP)”
* U.S. Department of the Treasury — “Making Home Affordable (MHA)”