If your home’s value has dipped below your mortgage balance, you’re not alone. Many homeowners face this challenge, known as being “underwater,” and assume refinancing is off the table. That’s a big myth. Enter the HIRO Mortgage Program.

Designed to help responsible homeowners stuck with high loan-to-value (LTV) ratios, the High LTV Refinance Option (HIRO) offers a powerful opportunity to lower your rate, reduce monthly payments, or switch loan terms, even if you don’t have equity.

HIRO gives eligible borrowers who’ve kept up with payments the chance to refinance without needing equity, new mortgage insurance, or a VA loan.

Key Takeaways:

• HIRO (High LTV Refinance Option) helps homeowners with little or no equity refinance.
• No VA loan required, available to qualified borrowers with Fannie Mae-owned loans.
• Requires current, on-time mortgage payments and income verification.
• May offer lower rates or monthly payments without new mortgage insurance.

What Is the HIRO Mortgage Program?

The HIRO program, short for High LTV Refinance Option, is backed by Fannie Mae. It's crafted specifically for borrowers who owe more than their home is worth due to market shifts, inflation, or other economic hurdles.

Key Features:

• No loan-to-value limit on fixed-rate mortgages
• No additional mortgage insurance required
• Streamlined documentation in some cases
• Potential for better interest rates or terms

Who Qualifies?

To be eligible, you generally must:

• Have a Fannie Mae-owned loan originated after October 1, 2017
• Be current on your mortgage with no 30-day late payments in the last six months
• Maintain a good mortgage history over the past year
• Meet income and credit criteria

Not sure if your loan is Fannie Mae-owned? Use this lookup tool: Fannie Mae Loan Lookup

Why HIRO Matters for Underwater Homeowners?

When home prices drop, traditional refinancing becomes nearly impossible. HIRO fills that gap.

Pro Tip: Even if your LTV is 105% or higher, HIRO can still offer you better terms, without requiring you to bring cash to closing or seek mortgage insurance.

Common Benefits:

• Lower interest rate = lower monthly payment
• Switch loan terms (e.g., from 30-year to 15-year)
• Avoid new PMI (private mortgage insurance)
• Improve financial stability without selling your home

Example:

A homeowner in Phoenix bought at peak prices and now has a home worth $350K, but owes $375K. Despite having no equity, they’ve paid on time for 3 years. Through HIRO, they refinance to a lower rate, saving $250/month with no added PMI.

How to Apply? (Without the Hassle)

Applying for HIRO isn’t like applying for your original mortgage; it can be easier, faster, and more forgiving.

Steps to Start:

1. Confirm Fannie Mae ownership
2. Gather recent pay stubs and tax returns
3. Contact a lender familiar with HIRO
4. Compare offers and select a refi plan

Need a referral? Platforms like Be My Neighbor connect borrowers with vetted mortgage professionals. Realpha offers commission-free home buying, potentially saving you thousands.

Important Disclosures

• Be My Neighbor is licensed under NMLS #1743790.
• Realpha is not a lender. It is a technology platform and real estate marketplace that facilitates commission-free home buying and refinancing.
• This content is for educational purposes only and does not constitute a mortgage approval or offer.
• Rates and eligibility are subject to change. All applications are subject to credit and underwriting approval.

Conclusion: Unlock Financial Relief—No Equity Required

Don’t let negative equity stop your financial progress. The HIRO mortgage program is a practical solution for committed homeowners looking to reduce monthly costs, adjust loan terms, and regain control of their financial future. And with tools like Realpha and Be My Neighbor on your side, the process can be simpler and more cost-effective than you think.

FAQs

What is the HIRO program in simple terms?

HIRO helps homeowners refinance when they owe more than their home is worth, without needing equity or new mortgage insurance.

Can I use HIRO if I’ve missed a payment?

No. You must have no late payments in the past 6 months and only one in the past 12 months.

Is HIRO available for FHA or VA loans?

No. HIRO is for Fannie Mae-backed loans only. FHA and VA have their own streamlined refinance programs.

Do I need mortgage insurance with HIRO?

Only if your current loan has it. HIRO does not require new mortgage insurance.

Can I refinance with HIRO through any lender?

Not all lenders offer HIRO. It’s best to work with a platform like Be My Neighbor to find qualified lenders familiar with the program.