harp loan first time home buyer guide and alternatives

What HARP was-and why it’s not a first-time buyer tool

The Home Affordable Refinance Program (HARP) ran from 2009 to 2018 to help owners refinance Fannie Mae or Freddie Mac mortgages, even with little equity. It was a refinance path only, not a purchase loan, so it doesn’t apply to a first-time buyer. Successor efforts like HIRO and FMERR also wound down. If you’re buying your first home today, consider current low–down payment programs instead.

Popular options for first-time buyers today

Several mainstream choices can mirror HARP’s spirit of access by lowering upfront barriers while keeping rates competitive.

• FHA: 3.5% down, flexible credit; upfront and monthly mortgage insurance.
• Conventional 97: 3% down; cancelable PMI; stronger credit helps.
• HomeReady/Home Possible: 3% down with income limits and education perks.
• VA: 0% down for eligible veterans and service members; no PMI.
• USDA: 0% down in eligible areas; income and location rules.
• Down payment assistance: grants or seconds that can pair with loans above.

Compare annual percentage rate, mortgage insurance cost, and cash-to-close, get a preapproval, and shop multiple lenders. Already own? Explore FHA/VA/USDA streamline or a rate-and-term refi as today’s nearest HARP analogs.