Homeowners, is HOPE for you?
By Keith Woeste
Special to the Pinnacle
The President has signed into law legislation that will allow
the Housing and Urban Development’s Federal Housing Administration
(FHA) to continue providing targeted mortgage assistance to
homeowners. The HOPE for Homeowners program will refinance
mortgages for borrowers who are having difficulty making their
payments, but can afford a new loan insured by HUD’s Federal
Housing Administration (FHA). The program began Oct. 1 and ends
Sept. 30, 2011.
Homeowners, is HOPE for you?
By Keith Woeste
Special to the Pinnacle
The President has signed into law legislation that will allow the Housing and Urban Development’s Federal Housing Administration (FHA) to continue providing targeted mortgage assistance to homeowners. The HOPE for Homeowners program will refinance mortgages for borrowers who are having difficulty making their payments, but can afford a new loan insured by HUD’s Federal Housing Administration (FHA). The program began Oct. 1 and ends Sept. 30, 2011.
The program is available only to owner occupants and will offer 30-year fixed rate mortgages – so the borrower’s last payment will be the same as the first payment. In many cases, to avoid what would be an even costlier foreclosure, banks will have to write down the existing mortgage to 90 percent of the new appraised value of the home.
Borrowers should contact their lender to determine eligibility, but here are some particulars regarding the program.
The home must be their primary residence, and they have no ownership interest in any other residential property, such as second homes.
Their existing mortgage was originated on or before January 1, 2008, and they have made at least six payments.
They are not able to pay their existing mortgage without help.
As of March 2008, their total monthly mortgage payments due were more than 31 percent of their gross monthly income.
They certify they have not been convicted of fraud in the past 10 years, intentionally defaulted on debts, and did not knowingly or willingly provide material false information to obtain their existing mortgage(s).
Keith Woeste is a local mortgage broker.
