There are many homeowners that now have an upside down mortgage. If you find yourself in this position there is a solution. The hope 4 homeowners program will reduce your mortgage balance. Your monthly payments will also be reduced.
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.
Your monthly payments can be drastically reduced. Payments may be reduced by as much as 50%. 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.
Income documentation will be needed. Many of the standard requirements apply for the hope to homeowners program. The big advantage is that you can drastically reduce your mortgage balance and your payment.
The H4H program was signed into law on July 30,2008. This is only available on owner occupied homes. 11/30/11 is the deadline for the program.
Not everyone will be able to qualify for this program. The loan amount has also been capped by the FHA.
This program can help you if you have mortgage troulbes. The situation that you are in can be improved dramatically.
There is an equity sharing element to the hope to homeowners program. Moving forward the FHA will also share in the profits if you build equity in your home. When you sell your home some of the proceeds will be given back to the original lender. The scale changes and is based on how much time has passed. Equity made in the future will also be shared by the FHA.
Find out more on hope 4 homeowners.