Former U.S. refinance program that let many underwater borrowers replace existing mortgages even when home values had fallen below loan balances.
The Home Affordable Refinance Program (HARP) was a U.S. mortgage-refinance program that helped many underwater borrowers refinance into more affordable loans even when home values had fallen below mortgage balances.
HARP mattered because traditional refinancing usually fails when collateral values drop too far. The program created a route for qualified borrowers who were current on their loans but trapped by high loan-to-value ratios after the housing crash.
HARP applied to mortgages owned or guaranteed by Fannie Mae or Freddie Mac and was designed for borrowers whose loan-to-value position would normally block a standard refinance.
| Core feature | What it did | Why it mattered |
| — | — | — |
| Government-backed eligibility rules | Limited the program to qualifying agency-backed loans | Focused relief on a defined mortgage pool |
| High-LTV access | Allowed refinance despite little or no equity | Helped underwater borrowers who were otherwise stuck |
| Current-payment requirement | Favored borrowers who had kept paying | Framed the program as refinance relief, not a default workout |
This made HARP different from a Loan Modification, which changes an existing loan rather than replacing it with a new refinance structure.
A homeowner owes more on the mortgage than the home is currently worth but has stayed current on payments. Without program support, the borrower cannot qualify for a normal refinance because the loan-to-value ratio is too high. Under HARP, the borrower may still refinance into a lower-rate loan and reduce monthly payment pressure.
It was a refinance program for qualifying borrowers, not a broad distressed-loan restructuring tool.
The program expired in 2018. It still matters as a finance term because it remains a reference point in mortgage-policy discussions and in explanations of post-crisis housing relief.
Refinancing: The broader process that HARP modified for a specific borrower group.
Negative Equity: The balance-sheet problem HARP was designed to work around.
Loan-to-Value Ratio: A key eligibility issue because high LTV usually blocks ordinary refinance.
Loan Modification: Different relief path that changes the existing loan rather than refinancing it.