Fannie Mae HARP Program

by Tim Herriage

Fannie Mae HARP Program

by Tim Herriage

by Tim Herriage

Many investors do not understand that the HARP program can help them too.  I have spoken to several real estate investors that have been able to significantly lower their interest rate and get in some cases the principal (That’s actually the HAMP program).  Here is some information about the HARP program and links where you can apply:

Home Affordable Refinance Program (HARP) Enhancements

The Federal Housing Finance Agency (FHFA), Fannie Mae, and Freddie Mac have announced enhancements to the Home Affordable Refinance Program (HARP) that are intended to make it easier for lenders to refinance the mortgages of eligible borrowers. Guidelines for Fannie Mae Seller/Servicers, including implementation dates and details, are now available. See FHFA’s announcement, Phase II Fact Sheet, and Phase II Q&A’s on

A critical part of Fannie Mae’s role in the Making Home AffordableSMProgram is the Home Affordable Refinance Program (HARP), available for refinances of existing Fannie Mae loans only. The goal of the refinance effort, as announced by the President, is “to provide access to low-cost refinancing for responsible homeowners suffering from falling home prices.” The expectation is that refinancing a Fannie Mae loan will put responsible borrowers in a better position by reducing their monthly principal and interest payments or moving them from a more risky loan structure (such as interest-only or short-term ARM) to a more stable product. Our solutions provide mortgage refinances with no limits on LTV, and mortgage insurance flexibilities.
Fannie Mae provides two Refi Plus™ options to provide Fannie Mae to Fannie Mae refinance solutions to eligible borrowers:

Refi Plus for manual underwriting

      Refi Plus simplifies the process of refinancing loans that are already in a lender’s servicing portfolio. This product has no limits on maximum LTV and provides mortgage insurance flexibilities for LTVs over 80 percent.

DU Refi Plus™ for loans underwritten through Desktop Underwriter® (DU®)

      DU Refi Plus provides increased efficiencies for the origination and underwriting of Fannie Mae to Fannie Mae limited cash-out refinance transactions in DU with no maximum limits on LTV and provides mortgage insurance flexibilities for LTVs over 80 percent. Eligible loans identified in DU receive increased underwriting flexibilities, including expanded eligibility criteria and DU minimum documentation requirements.


Read more here:

Resources and links:


For details on our Home Affordable Refinance options, consult the following Selling Guide Announcements for lenders and servicers.

SEL-2011-02 3/14/11 Selling Guide Updates (.pdf)
SEL-2010-04 3/29/10 Selling Guide Updates (.pdf)
09-37 12/30/09 Existing Loan Eligibility and Subordinate Financing Updates (.pdf)
09-26 7/24/09 LTV Expansion to 125% for DU Refi Plus (.pdf)
09-23 7/1/09 LTV Expansion to 125% for Refi Plus (manual underwriting) (.pdf)
09-20 6/25/09 Updates to Home Affordable Refinance Policies (.pdf)
09-15 5/29/09 Updates to Pricing (.pdf)
09-13 5/11/09 Updates and Clarifications to Announcement 09-04 (.pdf)
09-04 3/4/09 New Refinance Options for Existing Fannie Mae Loans (.pdf)



Reference FAQs (.pdf)
Options Matrix (.pdf)
Pricing Matrix (.pdf)
Education Recorded Tutorial
Other FHFA Statement (.pdf)


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