The home ownership program has been expanded by the Federal Housing Administration. The government is now focusing on providing this service to families who are struggling. Many households that are struggling to avoid foreclosure may be eligible for assistance from the government. More information on how to apply for this mortgage program is available below.
If you have a second mortgage, you may be able to get a lower interest rate for a five-year period. This is available for some income qualified homeowners who are struggling to make their mortgage payments. The program is now trying to get Federal Housing Administration loan modifications to help persuade banks and lenders to reduce loan balances so that borrowers have equity in their homes again and can therefore have more options.
The plan will give money to businesses and lenders to encourage them to help people who have borrowed money. This extra money should be a reason for people to sign up for the Hope For Homeowners Service.
A loan officer or banker can receive $500 upfront and up to $250 a year for up to three years for working with homeowners. The payment will be made to the officer until the mortgage is paid off. Homeowners who are struggling to make their mortgage payments may be eligible for financial assistance from this program. Borrowers who pay their mortgage on time will be rewarded with $250 a year for up to five years.
The new plan would allow bankers and lenders to ask the federal government to buy second mortgages at a reduced price, instead of the homeowner having to repay the loan. However, Treasury officials said they expected reductions in interest rates to be a more popular option than a buyout.
Terms of the Hope for Homeowners program
This change is giving new life to the FHA service. More foreclosures will be prevented due to the recent announcement of changes to the federal government’s Hope for Homeowners mortgage assistance program. The majority of financial assistance available enables individuals who owe more money than their property is worth to reduce the amount they owe by utilizing various modification methods.
Now, people who have mortgages or own homes may have their principal reduced. This resource is for people who are trying to get a lower interest rate. It applies to borrowers of all income levels. The federal government has a program that can help reduce your balance. Lenders will now have to evaluate if borrowers and homeowners are eligible for a mortgage write-down on the principal amount they owe through the Hope for Homeowners program.
New refinancing and modification options
This means that you could only borrow up to 105% of the appraised value of your house. Now, with the new revised program, borrowers who are underwater by more than the prior limit may be eligible for additional mortgage help from the FHA’s Hope for Homeowners program.
The current program is not as effective as the one in the past. The original Making Home Affordable program did not allow homeowners to refinance their mortgages if the debt was more than 105% of the home’s value. This meant that a homeowner with a $120,000 mortgage on a home that was only worth $100,000 would not have been able to qualify for a refinanced loan. This means that there was a limit that was strictly enforced.
Now, using the example above, the homeowner may be eligible for a modification under the newly revised Hope for Homeowners program. The limits for how much money you can spend have changed. The borrower may be given a new loan for $96,500. If the house is sold for less than the mortgage, the bank or lender would be responsible for the loss.
Call (800) 225-5342 for more information on the FHA Hope for Homeowners program. You will be given the contact information for a local counselor who can help you.