Upside down in your mortgage? Don’t think of forecloser think to refinance with FHA even if you don’t have an FHA loan. TheFederal Housing Aministration (FHA) will now refinance loans that are not FHA loans, according to the Housing and Urban Development (HUD).
Many homeowners are feeling the pain of depreciation, having their mortgage loan amount larger than the house value. By September 7, 2010, FHA says that even though the loan is not insured by FHA, they will refinance the home. HUD anticipates that over 50o,000 to 1,500,000 borrowers will take advatange of this Making Homes Affordable refinancing program.
In order to qualify, the home must be the borrowers primary residence, the borrower must be current on the existing loan and have a credit score of 500 or better.
When the borrower refinances the loan the existing mortgage holder must agree to forgive at least 10 percent of the balance making the total of all mortgages no more than a 115 percent loan to value ratio. To make this better the Treasury Department has also agreed to give incentives to any second lien holder that will forgive the all or part of their lien.
What does this mean? Need more information email info@cynthiarhodesonline.com or read the full HUD Information sheet NEW FHA Refinancing for Borrowers
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[...] FHA starting September 7, 2010 will begin to refinance loans for borrowers that are not using an FHA insured loan. Many homeowners have felt the crunch of the market with their existing loan being over and beyond the amount that the house is currently worth. The Federal Housing Administration along with the Treasury Department has revised a program called Making Homes Affordable. This program is outlined on a blog posted by Cynthia Rhodes at Augusta Real Estate Online http://augustarealestateonline.com/2010/08/dont-foreclose-refinance-with-fha/ [...]
[...] FHA starting September 7, 2010 will begin to refinance loans for borrowers that are not using an FHA insured loan. Many homeowners have felt the crunch of the market with their existing loan being over and beyond the amount that the house is currently worth. The Federal Housing Administration along with the Treasury Department has revised a program called Making Homes Affordable. This program is outlined on a blog posted by Cynthia Rhodes at Augusta Real Estate Online http://augustarealestateonline.com/2010/08/dont-foreclose-refinance-with-fha/ [...]