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FHA Mortgage Loans to Stem Credit Crunch with Hope for Homeowners Plan

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HUD can finally implement plans to expand foreclosure prevention programs, like Hope for Homeowners.  These new FHA home loans were designed to make loan payment more affordable for struggling homeowners.  FHA mortgage lending continues to rework their refinance programs so that more homeowners can benefit from refinancing bad credit mortgages with negative amortization and adjustable rate mortgage loans.


Watch Mortgage
Interview with HUD Secretary Steven Preston

With the FHA H4H program, homeowners would have to share any equity gained if a hold is sold or refinance before 5 years.  Hope for Homeowners loans are written down to 90% of the today’s market value.  In many cases, homeowners are under water with their mortgage exceeding the value of their home because property values have declined so much in the last two years.  Distressed homeowners are frustrated because they want to complete a mortgage refinance transaction while interest rates are at record low levels.  FHA mortgage rates remain very low at 5% for thirty year fixed rate home loans. For homeowners that don’t qualify for the H4H loan, Nationwide recommends a mortgage loan modification that would be negotiated with the loss mitigation department from your lender.

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