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I'm eligible for HARP, but my servicer doesn't participate. What can I do?

Q: We have a 5.25%, 30 year fixed, owe $147,000 through Indymac. I am underwater, have never been late on a payment and have credit scores in the low 800's. I am told we cannot get a HARP loan because we have to have 5% equity in our property. Is there any help out there?

A: Not all lenders/servicers participate in the HARP program, which is voluntary. If your loan is owned or backed by Fannie Mae or Freddie Mac and your servicer doesn't participate, you are free to go to another lender who is active in the program.

Among the items which make your loan eligible for a HARP refinance are:

  • Your mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009
  • Your mortgage hasn’t already been refinanced through HARP, “unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009”
  • Your loan-to-value ratio must be greater than 80 percent
  • You have to be current on your mortgage

To read the full eligibility requirements, go to www.makinghomeaffordable.gov/programs/lower-rates/Pages/harp.aspx and click on the “Eligibility” link for the basics, then “Program Availability” for the lookup tool for your loan. If you are eligible and your servicer doesn't participate, you can start to shop around for a mortgage lender who will write you a new loan. As with other offers, participation in the program and rates and fees will vary from place to place, so make sure you scour your market well.

Ask the expert
Keith Gumbinger
Keith Gumbinger
Mortgage Expert
Vice President, HSH.com
About Keith: Mortgage market observer and analyst with 35 years experience... (more)
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