Been turned down for a refinance? Try this program

You want to take advantage of today’s low interest rates, but you owe more on your home than it’s worth. There may be hope, however. If you’ve stayed current with your mortgage payments and your loan is owned by Fannie Mae or Freddie Mac, you may qualify for the federal government’s Home Affordable Refinance Program (HARP).

What’s HARP?

Launched in March 2009, HARP enables borrowers with little or no equity to refinance into more affordable mortgages without additional mortgage insurance. Through HARP, you can lower your interest rate, get a shorter loan term or change from an adjustable- to fixed-rate mortgage.

How do I qualify?

To be eligible for HARP, you must meet the following criteria:

• Your mortgage was originated before May 31, 2009.
• Your current loan-to-value ratio (LTV) is greater than 80 percent.
• You are current on your mortgage, with no late payments in the last six months and no more than one late payment in the past 12 months.
• Your mortgage is owned or guaranteed by Freddie Mac or Fannie Mae. Visit harp.gov and use the Loan Look-up Tools to see if your loan is backed by Freddie Mac or Fannie Mae.

What’s the minimum credit score required?

There is no credit score requirement. And even if you failed to qualify for HARP in the past, it’s worth trying again. In 2011 and 2013, the federal government made it easier to qualify for HARP than ever. Here are some of the changes:

• There are no longer loan-to-value limits. Borrowers will now be able to refinance regardless of how far their homes have fallen in value.
• There are no appraisals or underwriting.
• The required fees have been reduced.
• Lenders need less paperwork for income verification.

The Home Affordable Refinance Program won’t be available forever. You must apply for your refinance by Dec. 31, 2016. Talk to your lender to see if you qualify.