Refinancing your mortgage can lower your monthly payments, reduce your interest rate, and help you build equity faster — but if your home has lost value and you owe more than it’s worth, most traditional lenders won’t touch you. That’s the problem HARP was built to solve, and what its successor programs continue to address today.
Disclaimer: This article is for educational purposes only and does not constitute personalized financial or mortgage advice. Consult a licensed mortgage professional before making refinancing decisions.
What Was HARP?
When real estate values fall, some homeowners find themselves “underwater” — owing more on their mortgage than their home is currently worth. A homeowner with limited equity in this situation has few good options: selling doesn’t generate enough cash to pay off the loan, and traditional refinancing requires equity they don’t have.
In 2009, the federal government launched the Home Affordable Refinance Program (HARP) to give these borrowers a path to refinance at more competitive rates. Over the years, the program evolved to allow homeowners to refinance to above 125% of their home’s value without requiring new private mortgage insurance.
HARP ran for nearly a decade, helping approximately 3.5 million borrowers between April 2009 and December 2018. It expired on December 31, 2018 — and was not renewed, largely because demand had declined as the housing market recovered.
The HARP Replacement Programs
With some homeowners still holding underwater mortgages, two government-sponsored enterprises stepped in with programs that mirror HARP’s mission:
- Fannie Mae’s High LTV Refinance Option
- Freddie Mac’s Enhanced Relief Refinance
Freddie Mac and Fannie Mae are government-sponsored enterprises (GSEs) that buy and resell mortgages, making home loans more accessible and affordable. Their replacement programs are intended for homeowners with rising loan-to-value (LTV) ratios — too high to qualify for a standard private-lender refinance.
Homeowners with good credit and a steady payment history can potentially take advantage of lower interest rates through these programs, even if their home values have declined.
Important: You must refinance through the same GSE that holds your current loan. If your mortgage is backed by Fannie Mae, you cannot use the Freddie Mac program, and vice versa.
Fannie Mae’s High Loan-to-Value Refinance Option
The Fannie Mae High LTV Refinance Option helps homeowners refinance with little or no equity. It can result in a lower monthly payment, a reduced interest rate, or shorter repayment terms.
Key features:
- Minimum LTV of 97.01% for a single-unit primary home
- LTV thresholds vary for multi-unit properties, secondary homes, and investment properties
- No new mortgage insurance required if you don’t currently have it
- Less documentation required than a conventional refinance (simplified income, employment, and asset verification)
- You can refinance multiple times using this option, as long as you meet eligibility requirements each time
One important distinction from HARP: there is no single-use limit. However, if you previously refinanced through HARP, you are ineligible for this program.
Eligibility for Fannie Mae’s Option
To qualify, you’ll need to meet all of the following:
- Your existing mortgage must be a Fannie Mae loan originated on or after October 1, 2017. (Check using Fannie Mae’s loan lookup tool.)
- At least 15 months must have passed between your original mortgage note and your new high-LTV refinance note.
- You must be current on payments — no 30-day delinquencies in the past six months, and no more than one 30-day delinquency in the past 12 months.
- Your mortgage must not have previously been refinanced through Fannie Mae’s DU Refi Plus, Refi Plus, or HARP.
Freddie Mac Enhanced Relief Refinance
The Freddie Mac Enhanced Relief Refinance program works along similar lines for homeowners whose mortgage is backed by Freddie Mac. It’s designed for those with minimal equity who want to access competitive rates but don’t qualify for a standard refinance.
Key features:
- Minimum LTV of 97.01% for a single-unit primary home
- LTV thresholds vary for multi-unit properties, secondary homes, and investment properties
- No new mortgage insurance required; existing mortgage insurance transfers
- Reduced documentation requirements compared to a conventional refinance
- Multiple refinances allowed, subject to meeting eligibility requirements each time
As with the Fannie Mae option, prior HARP beneficiaries are ineligible.
Eligibility for Freddie Mac Enhanced Relief Refinance
To qualify, you’ll need to meet all of the following:
- Your existing mortgage must be a Freddie Mac loan with a note date on or after November 1, 2018. (Check using Freddie Mac’s loan lookup tool.)
- At least 15 months must have passed between your original mortgage note and your new high-LTV refinance note.
- You must be current on payments — no 30-day delinquencies in the past six months, and no more than one 30-day delinquency in the past 12 months.
- Your mortgage must not have been refinanced through HARP previously.
How the New Programs Differ from HARP
While the new programs share HARP’s core purpose, there are a few meaningful differences:
| Feature | HARP | Fannie Mae / Freddie Mac Options |
|---|---|---|
| Still accepting applications | No (ended 2018) | Yes |
| Refinance limit | Once | Multiple times (if eligible) |
| Prior HARP users eligible | N/A | No |
| Minimum loan age | None | 15 months |
| Minimum LTV | 80% | 97.01% (single-unit) |
| Maximum LTV | No limit | No limit |
The 15-month loan-age requirement is a notable addition. It gives lenders time to assess a borrower’s payment history and helps prevent predatory loan churning.
How the new programs differ from HARP at a glance
How to Apply
If you think you may qualify for one of these programs, start by contacting your current mortgage servicer. They can confirm whether your loan is backed by Fannie Mae or Freddie Mac, and walk you through next steps.
You can also reach the GSEs directly:
- Fannie Mae — Call (800) 2FANNIE (8 a.m.–8 p.m. ET), use the loan lookup tool, or visit Know Your Options.
- Freddie Mac — Call (800) FREDDIE (8 a.m.–8 p.m. ET), use the mortgage lookup tool, or visit Freddie Mac’s homeowner resource page.
Bottom Line
If you’re underwater on your mortgage — or close to it — and your loan is backed by Fannie Mae or Freddie Mac, these programs may be worth exploring. They can reduce your monthly payment, lower your interest rate, and help you build equity over time, even when a conventional refinance isn’t available to you.
The key first step is confirming which GSE backs your loan, then reaching out to your servicer to see what you qualify for.