HARP vs. HAMP what is the difference and who is each program for?

HARP (Home Affordable Refinance Program), is intended for responsible borrowers with good credit who wish to refinance, but have not been able to because they are underwater.. Using HARP, they can refinance without the need for an appraisal, so the Loan to Value considerations are somewhat ignored.. Under HARP, you can use any lender you wish and you're not bound to use your existing lender.. HAMP (Home Affordable Modification Program) is intended for borrowers who are struggling with making their payments.. They could even be behind multiple months... under HAMP, the lender looks at the household income and expenses, and can modify the terms of your existing loan by lengthen the term, lowering the interest rate, moving some of the principal to the back of the loan, or reducing the principal, or any combination of these.. But the goal is to get the monthly housing payment down to 31% of your monthly income.. With a HAMP loan, you must use your existing lender and your existing lender does not have to participate in the program.. 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

HAMP is a loan modification program and HARP is a refinance program. HARP will allow under water borrowers to refinance if they qualify. HAMP will change the terms of a current loan thru modification not refinance.

Joe summarized the differences in the programs well. HAMP will generally be for those who have fallen behind, and they may receive a principalreduction, as part of the modification -- and it may also lengthen the time until the mortgage is scheduled to be paid in full.HARP is for those who are in higher interest loans, and whose LTV (loan to value) is such that they would not qualify for a normal refinance. Under HARP - you would have to have a loan that is owned by Freddie Mac, Fannie Mae or FHA. There are also programs for USDA and VA which while technically not HARP would fit the same groups of people.

HARP is a refinance program and HAMP is a modification program. To lower your rate with HARP, borrowers must be current on their mortgage payments. HAMP is for borrowers that have fallen behind on their mortgage and cannot make payments - their lenders allows them to then change the terms of their current mortgage so they are more favorable and can make the payments.

Hello Jay,The HARP Program is a special program which allows homeowner's who have been paying on time, and are underwater or close to, to refinance lowering their interest rate and payment. As a broker I have lenders who will allow you to refinance up to 200% loan to value!!!I specialize in the HARP program and have helped many homeowners keep their homes and lower their payments by hundreds. There are certain requirements to qualify. Please call me for more information. I also provide a complimentary credit analysis.Lisa SchaerrerFive Star Mortgage702-947-7827 or435-313-7400

Good credit, HARP, poor credit, HAMP.

HAMP = existing loan MODIFICATION program. HARP = refinance program.

HARP is refinance of a Fannie Mae or Freddie Mac loan. HAMP is a modification of the loan.