The Original, Expired HARP Mortgage Program
The most commonly referenced version of HARP is the Home Affordable Refinance Program, a federal initiative launched during the 2008 financial crisis. Its purpose was to help homeowners who were current on their mortgage payments but were unable to refinance due to the diminished value of their homes, a situation known as being "underwater" on their mortgage.
Key features of the original HARP included:
- Eligibility was for mortgages owned by Fannie Mae or Freddie Mac that were originated on or before May 31, 2009.
- It allowed for refinancing even with a very high loan-to-value (LTV) ratio, with no upper limit for fixed-rate mortgages.
- Applicants needed to be current on their mortgage payments, with limited or no late payments in the past 12 months.
- Refinancing was possible without a full home appraisal in many cases.
This program offered a crucial lifeline for millions of homeowners, including many seniors, by allowing them to secure lower interest rates or move from an adjustable-rate to a fixed-rate mortgage. The program was extended several times before its final expiration on December 31, 2018.
What Replaced the Expired HARP?
Since the original HARP ended, the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac have introduced new options to assist homeowners with high loan-to-value (LTV) ratios who are struggling to refinance through traditional means. These programs are not HARP but serve a similar purpose for eligible homeowners, which can include seniors.
Fannie Mae High LTV Refinance Option (HIRO)
Fannie Mae's HIRO program is a successor to HARP for mortgages owned by Fannie Mae.
- Eligibility: Requires a Fannie Mae mortgage originated on or after October 1, 2017.
- LTV Requirements: High LTV ratios are required, with a minimum of 97.01% for a single-family primary residence.
- Payment History: Must have no late payments in the past six months and no more than one in the past year.
Note: Applications for HIRO were paused by Fannie Mae in early 2023 due to low applicant numbers as home equity has generally recovered nationwide.
Freddie Mac Enhanced Relief Refinance (FMERR)
This is the Freddie Mac equivalent and successor program for high-LTV borrowers.
- Eligibility: Requires a Freddie Mac mortgage originated on or after November 1, 2018.
- LTV Requirements: Minimum LTV of 97.01% for a one-unit primary residence.
- Payment History: Must have no late payments in the last six months and no more than one in the last year.
Understanding Other "HARP" Acronyms for Seniors
The acronym HARP can also be used for other, often regional or specific, assistance programs. This is a crucial point of clarification for seniors seeking help, as their needs may align with one of these other programs.
Home Hazard Removal Program (HARP) from NCOA
Offered through the National Council on Aging (NCOA) and other community organizations, this program focuses on fall prevention. It involves a behavioral intervention delivered by an occupational therapist to identify and modify hazards in a senior's home. It's funded through programs like the Older Americans Act.
Home Accessibility Rehabilitation Program (HARP) in Maryland
In some specific locations, such as Montgomery County, MD, there is a Home Accessibility Rehabilitation Program (HARP). It is designed to help older adults and people with disabilities renovate their homes to improve accessibility, covering things like ramps, grab bars, and accessible bathrooms. Eligibility often depends on income and residence status.
Health and Recovery Program (HARP) in New York
In New York State, HARP stands for Health and Recovery Plan. This Medicaid-managed care program is for adults aged 21 and older with significant behavioral health needs. It provides integrated physical and behavioral healthcare services.
Comparison of HARP (Expired), HIRO (Successor), and HECM (Alternative)
| Feature | Original HARP (Home Affordable Refinance Program) | Fannie Mae HIRO (High LTV Refinance Option) | HECM (Home Equity Conversion Mortgage) |
|---|---|---|---|
| Current Status | Expired December 31, 2018 | Paused by Fannie Mae in early 2023 | Active, FHA-insured reverse mortgage |
| Purpose | Mortgage refinance for underwater borrowers | Mortgage refinance for high-LTV borrowers | Access home equity as tax-free cash or credit line |
| Equity Requirement | Underwater (LTV > 80%) | High LTV (minimum 97.01%) | Must have substantial home equity |
| Target User | All homeowners with Fannie/Freddie loans | Homeowners with qualifying Fannie Mae loans | Homeowners age 62+ |
| Benefit | Lower interest rate, lower payment, or switch to fixed rate | Lower interest rate or better mortgage terms | Eliminates monthly mortgage payments |
Other Active Financial Assistance Options for Seniors
With the original HARP program no longer available, and its successor programs having different requirements, seniors need to be aware of other potential resources for financial assistance related to their homes. Reputable sources like the CFPB offer guidance for these options.
- Home Equity Conversion Mortgage (HECM): An FHA-insured reverse mortgage for seniors 62+ that allows homeowners to convert a portion of their home equity into cash. Monthly mortgage payments are eliminated as long as taxes and insurance are kept current.
- FHA Streamline Refinance: For seniors who already have an FHA loan, this can provide a way to refinance into a lower interest rate with less paperwork. It often does not require an appraisal or credit check.
- Homeowner Assistance Fund (HAF): Created under the American Rescue Plan, this fund provides federal aid to homeowners experiencing financial hardship for mortgage payments, taxes, and other housing-related costs. Availability and rules vary by state.
- State and Local Programs: Some states and municipalities offer their own financial assistance programs for senior homeowners, which can cover property tax relief, home repair grants, and other forms of aid.
Navigating Your Options
For seniors considering financial options related to their homes, the first step is to accurately identify your needs and the programs available in your area. If you are struggling with mortgage payments or want to reduce your interest rate, start by determining if your mortgage was owned by Fannie Mae or Freddie Mac using their respective loan lookup tools.
It is highly recommended to consult with a HUD-approved housing counselor for free or low-cost guidance. These counselors can help evaluate your options, understand the terms of different loan products, and provide unbiased advice based on your personal financial situation. The Consumer Financial Protection Bureau (CFPB) provides a list of these resources, which can be found via their website.
Conclusion: A Clear Path Forward
For seniors asking, “what is the HARP program for seniors?”, the answer is nuanced. The well-known mortgage refinance program is a thing of the past, but its legacy lives on through successor programs and other homeowner assistance options. Equally important are the other programs that use the HARP acronym, which address critical issues like home accessibility and fall prevention. By clarifying which HARP is being sought and investigating the current alternatives, seniors can find the right path to financial stability and healthy aging in place. Consulting with a professional financial advisor or housing counselor is the most effective way to navigate these options and make an informed decision for your future.
Consumer Financial Protection Bureau Mortgage Refinance Guide
