Home Affordable Refinance Program (HARP) is a mortgage-refinancing program offered to homeowners by the Federal Housing Agency. It is specifically offered to homeowners who have homes that are worth less than the outstanding balance on the home loan. It was created in 2009 to deal with the housing downturn. This refinancing program is beneficial for those homeowners who are struggling to pay a mortgage due to their unexpected financial hardships. An applicant should consider refinancing their loan through HARP only if they have a good payment history that did not incur any extra interest due to overdue payments and if they owe more than what their house is worth. Some advantages of refinancing your home loan through HARP are mentioned below: HARP lowers the mortgage rate incurred against a home loan It helps in shortening the loan term You can also transfer it to an adjustable-rate mortgage in a fixed-rate loan to reduce the mortgage rate and shorten the loan term HARP also helps in bundling closing costs into a new home loan You have to do minimum paperwork when compared with a traditional refinancing option. This makes the application process easier and smoother There is no minimum score required to qualify for a HARP loan You also don’t require to get an appraisal or have a loan underwriting from your previous lender, making refinancing process easier and faster It does not have underwater limits, which increases your chances of getting your loan refinanced through HARP Following are the eligibility requirements to qualify for HARP: