What Banks Will Give Me a HARP 2.0 Refinance Loan?

By Liz Clinger Updated on 7/21/2017

Many banks offer mortgage loan refinances through the Home Affordable Refinance Program(HARP), a refinance program designed for underwater borrowers with loan-to-value ratios (LTV) that disqualify them from traditional refinance loans. 

With qualifications relaxed as a result of the update to HARP 2.0, borrowers can obtain HARP refinances to lower their interest rates and monthly mortgage payments.

HARP Refinancing With Chase

Refinancing with the HARP program through Chase Bank has many benefits for underwater homeowners, including:

• Lower interest rates
• Reduced monthly mortgage payments
• Can switch from adjustable-rate to fixed-rate
• Can change mortgage term to either 30-year, 20-year, or 15-year

Chase offers this recently improved HARP refinance to homeowners throughout the U.S. to enable Americans to achieve the national dream of homeownership, to participate in the recovery of the housing market, and to stimulate the economy to its former vigor.

To qualify with Chase bank, homeowners must satisfy the following requirements:

• The mortgage must currently be serviced by Chase (mortgages from other lenders will not be approved)
• Borrowers must have a clear payment history with no missed payments within the past six months and a maximum of one missed payment within the past twelve months
• Homeowners must not have refinanced through the HARP program previously; only one HARP refinance is allowed per mortgage.

HARP Refinancing With Bank of America

For underwater homeowners hoping to obtain lower interest rates or alter the terms of their current mortgage, Bank of America offers to refinance loans through the Home Affordable Refinance Program (HARP), a program created by the federal government to aid those who were affected by the plummeting home values during the U.S. housing market collapse.

Bank of America HARP – Program Goal

Bank of America HARP refinancing helps borrowers lower their monthly mortgage payments by securing the historically low mortgage rates that are currently available. This program provides an opportunity for underwater borrowers with loan-to-value ratios (LTV) that exceed 100%.

Qualifying for a HARP Refinance with BofA

To qualify for a HARP refinance loan with Bank of America, borrowers must satisfy several specific criteria:

• Mortgage must be owned by Fannie Mae or Freddie Mac and must have been acquired by one of these enterprises before May 1, 2009
• Borrowers must have an LTV ratio of 80% or higher
• Borrowers must have made all mortgage payments on time within the past six months, with only one allowed delinquent payment within the past twelve months

Borrowers must meet these requirements, or they will be unable to obtain a HARP refinance through the Bank of America. 

There are other options. For those who have been unable to stay current on monthly mortgage payments, the Home Affordable Modification Program (HAMP) allows borrowers to modify their mortgages temporarily for lower monthly payments or reduced principal balance.

The application process for a HARP refinance with Bank of America consists of four basic steps:

Contact a representative.

After an evaluation, he or she will help borrowers submit an application, providing information about the HARP refinance program and the expenses involved in the refinance process.

Provide documentation.

After submitting the initial application, borrowers must next provide documentation for a more in-depth lender evaluation, concerning financial standing and credit history. To avoid any potential delays in the application process, borrowers should have all relevant documentation ready for submission and provide any specifically requested documents as soon as possible. 

Also, an appraisal may be ordered at this point in the process if deemed necessary under the circumstances.

Wait for processing.

Next step is to wait for the HARP application approval, and it takes about 75 days. Once Bank of America has decided, the borrower receives a letter informing him or her of the final approval or rejection and will be contacted by phone to schedule a closing date for the loan.

Wait for the clear to close.

 Borrowers then sign the closing documents and pay any up-front closing costs at this meeting, though borrowers can finance these fees into the loan amount.

HARP Refinancing With Wells Fargo

The HARP approval process for Wells Fargo consists of three basic steps:

Verify eligibility. 

Before discussing this refinance option with your lender, ensure that you satisfy the HARP eligibility guidelines. Borrowers must not have made any late payments within six months before HARP application, and the mortgage must have been acquired by either Fannie Mae or Freddie Mac before June 1, 2009.

Contact a representative. 

Your local Wells Fargo branch should have several representatives available who can either help you get started or point you to the correct banker. 

Submit an application.

After speaking with your representative about the HARP refinance terms and interest rates, you should submit your HARP application, along with any necessary documentation such as bank statements, mortgage statements, and pay stubs. Be prepared for a delay; the processing for a HARP application can take 30 days or more, depending on the circumstances.