Hey, HARP 2.0 Really Works! Here’s How…



Submitted by Patrick Davidson, Guild Mortgage

This revolutionary home loan program enables some “underwater” homeowners to take advantage of today’s record low interest rates!

Jane bought her dream home in 2008. The home was perfect for Jane and her two children.  Fast-forward to 2012. Jane and her family have been in the home these past four years, always making the house payment on time and always on top of other household bills and expenses as they arose.

Like all of us, Jane has seen the value of her home erode as the US economy sputtered over these past four years. Even so, Jane was aware that interest rates on home loans are at an all-time low. She wondered if there was any way she could take advantage of the record low interest rates and seize the opportunity to reduce her house payment.

Jane had worked with Patrick Davidson of Guild Mortgage four different times over a period of years and was always pleased with the way he had helped her navigate the maze of home mortgage lending. She was intrigued when Patrick told her about the Home Affordable Refinance Program (HARP 2.0) program, the incredibly low rates, and the absence of emphasis on loan-to-value ratio.

Jane and Patrick took a look at the numbers and were excited to discover that with a new loan at today’s low rates, Jane could save over $500 every month* on her house payment! Jane and Patrick got right to work on a new home loan. This process was even faster than usual because Jane did not need an appraisal.

Loan-to-value ratio has been a condition required for home loans as long as there have been home loans. But with HARP 2.0, that requirement can be avoided. You read that right – you might not even need to have an appraisal!  This means that even if your home has lost some of its “value” from the highs of around 2005 and 2006, you too might be eligible to refinance into a lower interest rate loan!

To be eligible for a HARP 2.0 refinance you must have closed on your current loan prior to June 1, 2009. You do not necessarily need to live in the house; and it doesn’t necessarily need to be a house (your condo may be eligible). The loan must be in a pool serviced by Fannie Mae or Freddie Mac and you cannot have done a previous HARP loan.

You still need to apply for the loan and show that you can make the payment. And you can’t get any money back. Is there mortgage insurance on your current loan? You might still be eligible to refinance. What if you rent the house out? Some non-owner occupied properties are eligible for refinancing under the HARP 2.0 program.

How do you find out if you’re able to give yourself a pay raise by taking advantage of today’s historically home loan rates? Well, you call Patrick Davidson at Guild Mortgage Company. He’s at 561-0339 or via e-mail at pdavidson@guildmortgage.net.

Even though everything that you have read to this point told you this, Fannie Mae and Freddie Mac want me to be sure to say this:

–       Fannie Mae and Freddie Mac have adopted changes to the Home Affordable Refinance Program (HARP) and you may be eligible to take advantage of these changes;

–       If your mortgage is owned or guaranteed by either Fannie Mae or Freddie Mac, you may be eligible to refinance your mortgage under the enhanced and expanded provisions of HARP;

–       You can determine whether your mortgage is owned by Fannie Mae or Freddie Mac by checking the following websites:

www.fanniemae.com/loanlookup, or


What if for some reason you’re not eligible for a HARP 2.0 refinance? Call Patrick Davidson at Guild Mortgage anyway! At Guild Mortgage, we offer both conventional and government insured loan financing.  And, because Guild Mortgage is a direct lender for FannieMae, FreddieMac and GinnieMae, we can get loans done that other lenders cannot.

For over 50 years, Guild Mortgage Company has been helping people realize their home-ownership dreams.  Guild Mortgage offers competitive interest rates and loan costs, superior customer service and committed, local underwriting.  Whether you’re trying to purchase your first home, downsizing into the last home you’ll ever have, or diversifying your investment portfolio, we provide the expertise and ability to help get you there.

Patrick Davidson (NMLS # WA-MLO-114110) has been matching Washington homebuyers and borrowers with the loan program that best meets their needs and circumstances for over 16 years.  You or someone you know could immediately benefit by working with Patrick and Guild Mortgage Company.

Guild Mortgage Company is an Equal Housing Lender.  NMLS ID#3274.

Of course, terms and conditions apply.  All loans are subject to underwriter approval.

* Monthly savings for qualified borrowers will vary based upon a variety of factors including but will not be limited to loan amount, existing interest rate, and the new rate for which the customer qualifies.

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