Hope for Homeowners
Upside down has become a new buzz word for many Americans that hold mortgages. There is a new progrram that can help you if you are upside down. Hope to homeowners can help you reduce the principal balance of your mortgage. You will also be able to reduce your monthly payments.
You can get a new loan based on the current value of your home. The upside down balance on your current mortgage will be forgiven. Your new mortgage will be based on 90% of the current value of your home.
This will result in a major reduction in your monthly payments. Mortgage payments may be reduced by as much as half of what you are currently paying. This will help many homeowners stay in their home.
The new loan will be an FHA loan. This means it is insured by the Federal Housing Administration.
Many home owners will be provided with help on their mortgage. If you have an upside down mortgage, take the time to research this program.
You will have to document your income. The lender will apply guidelines for you to qualify for the new loan. The big advantage is that you can drastically reduce your mortgage balance and your payment.
The hope to home owners program was signed into law on July 30,2008. This will not be available for investment properties. The program will expire on September 30, 2011.
You will have to qualify for this program. There are maximum loan amounts for this program.
If you have been worried about your mortgage this plan may be for you. You will have the ability to drastically change your current mortgage situation.
Your current lender will share in the equity that you make in your home in the future. Moving forward the FHA will also share in the profits if you build equity in your home. Some of your equity will be returned to the original lender when you sell your home. The scale changes and is based on how much time has passed. The FHA will also share in your home’s equity moving forward.
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