The Home Affordable Refinance Program was designed to help homeowners avoid foreclosure and find a solution to their mortgage debt problems. While the program has gained quite a bit of popularity in recent months, it is important to point out that not all mortgages are eligible to receive help.
HARP was not designed for all mortgage loans and, therefore, leaves some homeowners out of the running for help. The program was designed for conventional loans, specifically those backed by Fannie Mae or Freddie Mac. Loans that are not backed by Fannie or Freddie are not eligible to participate in the refinancing program under HARP. Further, Fannie and Freddie backed loans must have been secured prior to June 1, 2009 and homeowners must not have participated in HARP or related programs in the last 12 months prior to applying.
Another hang up some homeowners are facing when pursuing the HARP program is that not all lenders are participating in the program. However, even if a current lender isn’t participating homeowners can still find help through one that is. The HARP website can help put homeowners in touch with a participating lender and help them shop around for the best refinancing offer among those lenders.