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What's the difference between HARP and HAMP?

by spenceramiro from Atlanta, Georgia. Jul 1st 2013 Reply


William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,683 contributions

HAMP is a government sponsored loan modification program, where you can only apply with your current lender, and they will work on modifying or changing the terms of your original mortgage agreement by either lengthen the term, lowering the interest rate, reduce principal, or a combination of the 3 to get your mortgage payment within an affordable range (determined by the guidelines). HARP is a refinance program, where you can refinance without the need for an appraisal. So if your underwater or just don't have sufficient equity to refinance, under HARP you still can. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Jul 1st 2013
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Eric Wilcox (ewilcox)
#209 ranked lender in Florida - 9 contributions

The HARP Program is for a complete new refinance with new terms and usually with a new lender.The HAMP Program is for a modification of terms to your existing mortgage with the same lender.Please let me know if I can be of further assistance.Thank you.Daren

Jul 1st 2013
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Kimberly Lawson (kilawson)
#54 ranked lender in Ohio - 150 contributions

HAMP was designed to let homeowners avoid foreclosure by subsidizing mortgage lenders' modifications to borrowers' home loans. To qualify for a HAMP modification, you must: oUse the home as your primary residence oHave a mortgage less than or equal to $729,750 oHave gotten your mortgage before January 1, 2009 oHave a housing payment including principal, interest, property taxes, HOA dues, and insurance that exceeds 31% of your gross (before tax) monthly income oHave a documentable hardship -- either a significant reduction in income or increase in expenses that was beyond your control oHave a stable source of income sufficient to make a modified payment If you meet these criteria, contact your lender. You'll have to document your income, debts, assets, and hardship before you can get a trial modification, and ultimately a permanent one. HARP: HARP was created to let creditworthy homeowners who are underwater (mortgage is greater than home's value) on their mortgages refinance to the lowest available mortgage rates. You don't have to be cash-strapped or at risk for foreclosure. To qualify for HARP, you must: oOwn a one- to four-unit home oHave a mortgage that is owned or guaranteed by Fannie Mae (DU Refi Plus) or Freddie Mac (LP Open Access). oHave no late mortgage payments (more than 30 days late) in the last 12 months (some may accept 1x30 but must have been current the last 6 months and current at closing. oOwe no more than 125% of the value of your home (on the first mortgage; combined loan-to-value ratio can be higher -- only first mortgage is refinanced).I'd be happy to answer any other questions you might have.Best, Kim Lawson, Ohio Licensed Mortgage Laon Originator. Contact and licensing information can be found on my profile.

Jul 1st 2013
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,683 contributions

HAMP is a government sponsored loan modification program, where you can only apply with your current lender, and they will work on modifying or changing the terms of your original mortgage agreement by either lengthen the term, lowering the interest rate, reduce principal, or a combination of the 3 to get your mortgage payment within an affordable range (determined by the guidelines). HARP is a refinance program, where you can refinance without the need for an appraisal. So if your underwater or just don't have sufficient equity to refinance, under HARP you still can. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Jul 1st 2013
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Jason Vondrak (jvondrak)
#219 ranked lender in California - 1,741 contributions

HARP if the Home Affordable Refinance Program where you can refinance your underwater mortgage to a lower interest rate to make homeownership more affordable. You can complete a HARP refinance with any lender the offers the program. HAMP is a modification program where you work with your current lender to modify the terms of your existing mortgage (rather than refinancing and paying off your current mortgage with a new mortgage). With HAMP you keep the same mortgage, just modify the terms to make it more affordable and to prevent foreclosure.

Jul 1st 2013
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James Mazzola (Mazzola)
#110 ranked lender in New Jersey - 313 contributions

HAMP is a government sponsored loan modification program, where you can only apply with your current lender, and they will work on modifying or changing the terms of your original mortgage agreement by either lengthen the term, lowering the interest rate, reduce principal, or a combination of the 3 to get your mortgage payment within an affordable range (determined by the guidelines). HARP is a refinance program, where you can refinance without the need for an appraisal.

Jul 1st 2013
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James Mazzola (Mazzola)
#110 ranked lender in New Jersey - 313 contributions

HAMP is a government sponsored loan modification program, where you can only apply with your current lender, and they will work on modifying or changing the terms of your original mortgage agreement by either lengthen the term, lowering the interest rate, reduce principal, or a combination of the 3 to get your mortgage payment within an affordable range (determined by the guidelines). HARP is a refinance program, where you can refinance without the need for an appraisal.

Jul 1st 2013
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Kiernan Brown (KiernanBrown)
#51 ranked lender in Michigan - 149 contributions

As you have read HAMP is Home Affordable Modification and HARP is Home Affordable Refinance Program. The HAMP typically modified a loan to a much lower rate and then escalated that rate over the next 5 years until it capped out at 5.5 to 6%. Most HAMP files reduced rate to 3% and then climbed by .5% until the fifth year when it was capped at 5.5%. Recently I have not seen or heard of too many people completing the HAMP process, due to the difficulty lenders have created or because of there situation changing for the better and worse. If you are to pursue a HAMP locate a local attorney that does home modifications. Good luck if you are applying for a HAMP. HARP is a much easier process should you qualify.

Jul 1st 2013
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