What Are the Harp Guidelines

What Are the Harp Guidelines?

In this article, we’ll discuss the important topic of: “What Are the Harp Guidelines?”

Before we dive in, we must have a little background to what the HARP program is all about. Let’s start with understanding the basics of HARP and later decide if this can apply to the ongoing financial crisis, if any, in our life. HARP stands for Home Affordable Refinance Program designed for owners of a house that is worth way less. This program is basically intended to provide relief to someone from the financial crisis. This is the best option for borrowers who are underwater on their mortgages. 

What Are the Harp Guidelines?

When we talk about someone underwater on their mortgages, it means they owe more on their home than it is worth. If you are an underwater or near-underwater homeowner, Harp is for you! It will help you refinance your mortgage while there’s a drop in the home prices. 

This program offers its best to pull you out of the financial crisis that’s stressing you. It is only applicable for borrowers who can qualify its terms, such as, a borrower is required to be up to date with his mortgage payments and that the property should be in fine condition. If you have a history of defaulting or having vacated the property, you don’t qualify for Harp. This program is no longer in operation since December 31, 2018. 

The alternative for defaulters is called Hamp, which interprets as the Home Affordable Modification Program. Modifications report on the credit report of borrowers. 

Therefore, it may affect your future creditworthiness. Those who lend mortgages are basically looking for borrowers with good income and assets and enough credit scores. There are a couple of guidelines one must qualify to get the benefits of a harp loan as there will be loan disclosures to sign and related formalities. 

Benefits of Harp Loan

This loan is for borrowers to get a refinance on their mortgage, and it offers the following benefits:

  • A lower interest rate on the mortgage
  • The time length for a loan is shorter 
  • Monthly mortgage payment also isn’t high 
  • There is a fixed mortgage rate and not adjustable 

How Can You Get Started?

It won’t take much to understand Harp correctly once a few things are checked off your list. 

  • Carefully look if you qualify for Harp 
  • Check your loan-to-value percentage with the help of an LTV calculator 
  • Your mortgage lender must be one of the approved Harp loan lenders. 
  • Find out about the current mortgage rates.

Harp Guidelines

Some of the essential Harp guidelines are shared for your thorough understanding. 

  • The LTV must be more than 80%
  • This loan does not allow more than one late payment of 30 days in a year 
  • One cannot refinance the same property two times through Harp

These are a few guidelines that might make ‘going ahead’ easy. 

Harp Pre-Eligibility

To meet the additional requirements for a Harp refinance, we must ensure the following:

  • The concerned home should be your primary residence 
  • It is essential to check your address so there won’t be any confusions 
  • It doesn’t matter if at some point someone has turned you down for Harp refinancing.

Essential Documents Needed for The Process

The application process for Harp is almost similar to your original mortgage. Since this program is designed specially to help people out of the financial crisis. You will need:

  • Previous two years’ tax return 
  • Listing outstanding debts, if any 
  • Your recent bank Statements and mortgage 
  • Listing of brokerage accounts and savings accounts 


What is the harp program?

The harp program has been designed for borrowers who are going through a financial crisis, especially at the hands of a home mortgage, using a refinance on the same property. If somebody asks you, what is the harp program, you should know it! 

What are Harp loan disadvantages?

The loan disadvantages definitely aren’t as many as the benefits it offers. Watch out for scams, any refinancing scams. Without checking the mortgage company first, one is not supposed to make a mortgage payment to anyone. If someone asks what are the Harp loan disadvantages, you must understand yourself and learn to share with the one that needs it. 


What are the Harp guidelines?  Harp guidelines are simpler to imply than you thought. Based on your objectives, you should try to understand Harp because your entire mortgage arrangement can be revised another time. It’s best to understand and ensure that the policies of Harp are met. 

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Discolsure: I am not a financial expert and it is highly recommended that you seek out a professional before making any financial decisions. Articles are informational and for educational purposes only.

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