The Details
Here are the details to the program:
1) 3.9 billion for neighborhoods hardest hit by foreclosures.
2) Help struggling homeowners get new cheaper loans.
3) Help Freddie Mac and Fannie Mae with a cash infushion.
4) The bill would let hundreds of thousands of homeowners trapped in mortgages they can't afford on homes that have plummeted in value escape foreclosure by refinancing into more affordable, fixed-rate loans backed by the Federal Housing Administration.
5) Lenders would have to agree to take a substantial loss on the existing loans, and in return, they would walk away with at least some payoff and avoid the often-costly foreclosure process.
6) Included 15 billion in housing tax breaks, including a credit of up to $7500 for first time home buyers for people who bought homes between April 9th, 2008 and July 1st, 2009. It also allows people who don't itemize their taxes to claim a $500-$1,000 deduction on their 2008 property taxes. That chiefly benefits homeowners who have paid off their homes and can't claim a deduction for mortgage interest.
7) The bill sets a cap of $625,000 on the loans that Fannie Mae and Freddie Mac may buy and the FHA may insure. It lets them buy and back mortgages up to 15 percent above the median home price in certain areas.
My Summary:
This program will help to stabalize the money markets and reduce a further forclosure problem in the real estate market and get our ecomony back into a stable situation, faster.
We are approved to help homeowners in over 22 states. So if you would like help in getting aproved for an FHA "Hope for homeowner's program", contact me to get started.
More Specific Details about The Program:
Who is eligible for the program?
1. All Qualified borrowers must live in their homes and have loans that were issued to them before January 1st, 2008.
2. Qualified borrowers must be spending at least 31% of their gross monthly income on mortgage debt to be eligible for the program.
3. The borrowers can be up to date on their existing mortgage or in default, but either way borrowers must prove that they will not be able to keep paying their existing mortgage. Additionally, they must attest that they are not deliberately defaulting just to obtain lower payments.
4. Prior to getting an FHA-backed mortgage, they must first retire any other debt on the home, such as a home equity loan or line of credit. The same borrowers are not permitted to take out another home equity loan for at least five years, unless it's to pay for necessary upkeep on the home.
5. Borrowers can get a new home equity loan, subject to approval from the FHA. The total new combined debt cannot exceed 95% of the home's appraised value at the time.
How can i apply?
1. Borrowers can contact their current mortgage servicer or go directly to an FHA-approved lender for help. [that's us] These lenders can be found on the Web site of the Department of Housing and Urban Development.
Read Additional questions and answers in the FAQ Section of this website.
