Home Affordable Refinance Program

A Home Affordable Refinance Program (HARP) loan is an initiative in response to President Obama's housing program.

First, do you have a FNMA or FHLMC Loan?  Click here and find out: 

FNMA:  www.fanniemae.com/loanlookup

FHLMC:  www.freddiemac.com/mymortgage

Fannie Mae has created a program to provide affordable refinance options for borrowers whose loans are held by Fannie and Freddie.  Effective with registrations on or after April 6, 2009, this program is for borrowers who have demonstrated an acceptable payment history, but due to declining home prices or where mortgage insurance is no longer available, have been unable to refinance to obtain a lower payment or move to a more stable product.

Basically, this program will allow anyone who holds a current FNMA loan to obtain a STREAMLINE refinance to a lower rate even if the home value dropped significantly.  This refinance program is available for loans underwritten through FNMA’s automated underwriting engine, owned by FNMA.  Eligibility for this program will be determined by DU and identified in the DU Underwriting Findings.  Loans with existing mortgage insurance are not eligible for this product

NO Minimum FICO score is required!

Mortgage may NOT be MORE THAN 60-DAYS late in past 12 months!

FNMA loans that have current PMI are NOT eligible

HARP Loan Basics
    -Maximum LTV = 105%
    -No maximum CLTV
    -Limited or no cash out only   
    -Cash out not permitted
    -Conforming and Agency jumbo loan amounts permitted
    -1-4 unit primary and investment properties and 1 unit 2nd homes

Subordinate Financing:  No new subordinate financing is permitted.  Existing second liens must be paid off separately by borrower or re-subordinated. No subordinate financing may be paid off with the proceeds of the new loan.  The existing second mortgage cannot be restructured and/or increased as part of this new refinance transaction.


Eligible Borrowers

The following borrower types are eligible. 


Eligible Property and Occupancy Types

The following property types are eligible. 


Ineligible Existing Mortgages

The following existing FNMA-owned mortgage types are ineligible to be refinanced under this program:

-Loans delivered to FNMA after February 28, 2009.

-Manufactured Homes


 Maximum Loan Amounts

Conforming Loan Amounts:

-$417,000 – 1 Family   ($729,750 in Ocean County)

-$533,850 – 2 Family

-$645,300 – 3 Family

-$801,950 – 4 Family

      High Balance Loan Amounts - County limits may be found at             https://entp.hud.gov/idapp/html/hicostlook.cfm, change “Limit Type” to Fannie/Freddie, and look at “Limit Year” CY2008 and CY2009 to determine which is higher.


Maximum Loan-to-Values is 105%  (No maximum CLTV)



1.  Limited Cash Out is allowed and means... payoff the unpaid principal balance on the existing 1st mortgage, the financing of closing costs, prepaid items and points, and cash back to the borrower the lesser of 2% of the new mortgage amount or $2000.

2.  Existing subordinate financing may not be paid off, and new subordinate financing is not permitted.

3.  Loans with existing Mortgage Insurance are not eligible.


Underwriting Considerations

All loans must be underwritten according to FNMA standards unless otherwise noted.  Desktop Underwriter must be utilized.

 A.  Appraisal – a full appraisal is required.

 B.  Credit Requirements: 

1.  A new tri-merged credit report must be pulled by Alliance.

2.  Minimum FICO – None

3.  No 60-day late in the past 12 months, any mortgage tradeline.

4.  Borrowers must meet standard FNMA mortgage delinquency, bankruptcy and foreclosure policies.

 C.  Documentation Requirements:

1.  Income.  Below are the minimum standards:

  a.  Salaried borrowers – most recent paystub indicating the most recent 30 days earnings and   YTD earnings.

   b.  Self-Employed or commissioned borrowers – most recent tax return covering a full year, all   schedules.

         c.  A Verbal Verification of Employment will be performed by underwriting for all borrowers  who are not self-employed, within 7 days of closing.

 2.  Assets needed for closing must be verified.  Gift funds can be used for closing costs and prepaids.

Maximum Debt To Income determined by DeskTop Underwriting (DU) findings.  Alliance to   perform DU check.  

D.  Maximum Number of Financed Properties:  No maximum.

      E.  Required Borrower Benefit:  The underwriter must represent and warrant that the borrower is              receiving a benefit in the form of either: 

    -A reduced monthly mortgage principal and interest payment; or

    -A more stable mortgage product, for example, moving from an ARM to a fixed-rate mortgage.

F.  Seasoning:  No minimum.

    G.  Title - Borrowers on the existing mortgage must match borrowers on the new loan.  Borrowers may be added to the new loan, providing the existing borrower(s) remains.


Call Alliance today at 732-797-0117 to find out more about the HARP Program.