Preferred Loan Type

Property Type
  Property Value
Credit Rating
  Don't know your credit rating?
Click HERE to find out now!
Free Quote
Oct
14

New FHA Refinance Loans Providing Financial Relief for Homeowners

By

With all of the hype regarding the $850 billion bailout of the financial sector many people have overlooked the new FHA home loan that is designed to prevent foreclosures and help homeowners get back on their feet. This new FHA home loan program, Hope for Homeowners was passed by Congress passed last summer and President Bush signed it into law on July 30.  The Federal Housing Administration officially took control the mortgage program on October 1st.  According to California mortgage broker Jeff Morris, “For most borrowers its refinance or renegotiate into a lower monthly mortgage that they can afford.”

Hope for Homeowners, also known as FHA- H4H enables bad credit borrowers and those in jeopardy of losing their home in a foreclosure to refinance their mortgage into 30-year home loan with a guaranteed fixed rate.  Like other FHA mortgages, they are insured by the government. Meanwhile, FHA lenders have agreed to renegotiate and “write down” the loan principal to 90 percent of the property’s present appraised value, which in most cases is significantly lower than the original purchase price and existing mortgage balance.  Clearly the government has been actively creating mortgage products to help fight this foreclosure epidemic.

Share

5 Comments

1

We are having a difficult time qualifying borrowers for the FHA Secure program, because most applicants have late payments on their mortgage prior to the loan adjusting. How are you finding homeowners who qualify for FHA refinancing? (talking marketing)

2

I have to admit there is a lot of truth in your article. Too many realtors are pushing short sales over loan modifications…Great writing!

3

Awesome article! I’m so sick of the b.s. I keep reading in the newspapers. There is nothing wrong with paying a loan modification company to lower the interest rate so a homeowner can avoid foreclosure…AMEN!!!

4

What are the combined loan to value restrictions for FHA and homeequity loans closing concurrently? Can you get a cash out refinance and an equity loan up to 115 percent?

5

Mortgage rates are still historically low, but guidelines are way too tight. The average homeowner simply does not qualify for an FHA loan. Do you think they will revise the Hope for Homeowners, so that lenders don’t ruin the program?

Leave a Comment