HARP is the acronym for the Home Affordable Refinance Program. In an effort to help stabilize the housing market, the government developed the program to help homeowner’s who either did not have enough equity for a traditional refinance or who were having problems making payments on their current mortgages.
The Fannie Mae refinance program goes by 2 names: the Refi Plus or DU Refi Plus (DURP) program. It allows the refinance of a 1st mortgage up to 105% of the appraised value of the property. Junior liens may be subordinated to an unlimited combined loan to value. The Fannie program has similar pricing adjustments to a normal refinance program. You are able to refinance a Fannie loan with any Fannie lender offering the program.
The Freddie Mac program is known as the Relief Refinance Mortgage. It only allows you to finance (roll in) $2,500 in closing costs, but there are far fewer pricing adjustments. With the Freddie program, your loan has to end up with the same lender that currently has your loan. Again, you may go up to 105% of the value of your home and junior liens may be subordinated.
Loan modifications are also available under the HARP program.
More information may be found at www.MakingHomeAffordable.gov