The Fha Hope For Homeowners Program
The Hope For Homeowners program is designed to help you refinance your house for less than what you owe on it. It does this by getting your current lender to forgive some of the mortgage amount. How is this possible? Read about it in this article!
How does this program help me?
This is actually an FHA loan product and works much like a "short" refinance. This program will allow you to refinance, no matter what kind of loan you currently have, into a new, fixed rate mortgage. It will allow a refinance up to 96.5% of your home's current appraised value. In addition, the loan term can be extended out to 40 years. The most important feature is that your current lender must agree to forgive any debt that is above the 96.5% loan amount for this program to work. Why would you lender agree to this? Because this program might be less costly to your lender than a full foreclosure would be. Be aware though, this loan has a "shared equity" arrangement. That means if you sell the house in the future FHA has rights to a piece of the profit (if any); it is called an "Exit Premium".
Who should I contact?
Any FHA approved lender can do the program. Use HUD's lender look-up to find a local FHA approved lender (HUD manages all FHA products). When interviewing lenders be sure to ask if they are familiar with the Hope for Homeowners program. If the answer is "no", keep looking until you find a lender that is.
What should I expect?
This loan is a little more complicated than a regular refinance. It could take 60 to 90 days depending on how busy the company is that you choose to do your loan. The company that handles this for you will have to liaison with your current lender (trying to get them to forgive part of the current mortgage debt so the refinance can take place) and that is where most of the delays will occur.
Be prepared by having your personal financial documents ready and ask lot's of questions! This program does have some serious stipulations such as: Future shared equity with the government and expensive mortgage insurance.
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ABOUT THE AUTHOR
Want to find out ALL the foreclosure prevention programs available to you? The website SavingTheHouse.org will answer that question and more.
Over recent months many Government and private programs have been developed to lower mortgage payments yet most homeowners don't know how to find them. This site has done all the research saving a homeowner weeks of confusion and phone calls. On this site a homeowner answers 3 simple questions to learn:
* Which programs are available to them.
The site is also free to use.