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September 3, 2008 ( PowerHomeBiz
) - Tampa, FL
-- The President has signed into law legislation that will allow HUD’s
Federal Housing Administration (FHA) to continue providing targeted mortgage
assistance to homeowners. The Hope for Homeowners program will continue
FHA’s existing and successful efforts to provide aid to struggling families
trapped in mortgages they currently cannot afford. Under the program,
certain borrowers facing difficulty with their mortgage will be eligible to
refinance into FHA-insured mortgages they can afford. The program will be
implemented on October 1, 2008.
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Homeowners May Already Be Eligible For Assistance
Families should not wait to seek mortgage relief. Right now, homeowners
can determine if they are already eligible for mortgage assistance through
FHA Secure, FHA’s existing refinancing program. They can obtain information
through either of the following options:
1. Contact a local, HUD-approved housing counseling agency at HUD.gov; 2.
Contact the HOPE NOW Alliance at 1-888-995-HOPE
Sustainable, Affordability Homeownership
Hope for Homeowners maintains FHA’s long-standing requirement that new
loans be based on a family’s long-term ability to repay the mortgage. FHA
only allows owner-occupants to be eligible for FHA-insured mortgages.
Borrowers must also meet the following eligibility criteria:
Their mortgage must have originated on or before January 1, 2008; Their
mortgage debt-to-income must be at least 31 percent; They cannot afford
their current loan; They did not intentionally miss mortgage payments; and
They do not own second homes. Features of FHA-insured loans under the new
program include:
30-year, fixed rate mortgage; Maximum 90 percent loan-to-value ratio; No
prepayment penalties; $550,440 maximum mortgage amount; Extinguishment of
any subordinate liens; and New home appraisals from FHA-approved appraisers.
HUD, Treasury, FDIC and the Federal Reserve will form the
Congressionally-mandated Board of Directors and work together to establish
additional program standards.
Voluntary Lender Participation
FHA will continue to offer lenders an alternative to foreclosing on
borrowers. Similar to FHA Secure’s recent expansion, lenders will be
encouraged to write-down the outstanding mortgage principal balances to 90
percent of the new value of the property. In many cases, reductions in
principle will cost lenders less than the losses associated with
foreclosure. Published By Federal Housing Administration
Donald Troisi
Regional Sales Director
Amerisave Mortgage Services
For free information contact: 352 597 6296 AMERISAVE@TAMPABAY.RR.COM
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