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FAQ

Who is helped by the "Hope for home owners program"?

 

Home owners who have owned their home and no longer can make the payments in a timely manner. People who purchased their homes under the Sub-Prime, high interest rate, interest only, style loan programs.  Home owners who currently own their homes and the values have dropped dramatically in value and currently are paying mortgage payments based on high loan amounts, where they owe more than the home is worth. [ask for specific definitions and details regarding the FHA loan guidelines related to this program].

 

 

What will this FHA program cost me?

This FHA program is similar to current FHA Loan programs. Your loan cost can be paid in the new loan amount or out of pocket, based on the FHA mortgage lending requirements for this program. Your lender can explain the details.

I have bad credit. Can I get Help?

 

FHA looks at an array of qualifying factors when approving someone for an FHA loan.  FHA has what is called "traditional underwriting" and this underwriting method allows for people with less than perfect credit to become approved outside of an electronic underwriting system. Underwriters look at a person(s) ability to pay as well as other factors in determining  a loan approval. Your loan officer can assist you in supplying the correct information needed to get approved under this method. 

Do I have to have equity in my home to qualify under this program?

This FHA approved loan program was established to help those who no longer have any equity in their home. You can owe more in your current loan program than what the house is worth and still get approved under this loan program.  Contact your FHA approved loan officer to get more information and get started.

I am in Foreclsure! Will I still have to pay the attorney & other fees?

FHA has required that any current lender, holding our mortgage loan, wipe out those fees.  You will not have to pay those fees under this program. Your current lender will have to take the loss. 

Why would my current lender accept these terms?

Mortgage lenders across America are taking a terrible hit on their financial books since they have more foreclosures than they can handle.  Each foreclosure they have has to been sold in the market place.  When a foreclosure is place on the market by a bank, the bank has to pay the listing agent and buyer's agent up to 6% commission. This amount of money is an additional sum lost on top of what the house is currently worth. 

Home prices have continued to decline as more and more foreclosure properties are placed into the retail real estate marketplace. Lenders carry the holding costs as well as many other costs while waiting for the property to be sold. The cost can be enormous.  It is more cost effective for many lenders to accept the terms offered by the FHA program.    

How does my current lender benefit from this FHA Program?

Your current mortgage lender must accept the terms and conditions offered by the new FHA “Hope for Home Owners Program”. This is an FHA underwriting requirement in order for the new loan transaction to close.

Your current lender could benefit from allowing FHA to purchase your present loan from your current lender. Your current lender may benefit from any equity gain within a timeline of up to 5 years from the date of transaction closing.

What if I am currently making my high interest rate mortgage payment on time?

Under this FHA program, if you are making your current mortgage payment on time but you are making all your other credit payments, late, you may still qualify for the program. The program is very new and the details have not yet been established.  Contact your FHA approved loan officer for specific answers to this question.  

What will the FHA loan refinance cost?

The costs to refinance your loan under this loan program have not been defined as of this time.  Underwriting guidelines will provide the details when they are exposed on or before October 1st, 2008.

What will I save?

Savings depend on what borrowers are paying for their present loan and where they live, but for most people it will be substantial, even after factoring in the FHA fees.

In areas that have sustained huge price drops, such as the Inland Empire of Southern California, where prices have fallen by about 30% over the past year, some loans might be reduced by more than 40%.  Understand, the FHA loans carry reasonable interest rates, which are fixed for the life of the loan, as opposed to a subprime adjustable-rate mortgage that can jump higher every six months.  This offering provides a true savings to many.

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