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The Hope for Homeowners program has been enhanced, making it easier for homeowners who are experiencing problems in making payments on their existing mortgage to qualify for needed FHA refinancing. The Department of Housing and Urban Development (HUD) announced changes to the program that will reduce the costs for consumers and lenders, and expand eligibility by driving down the borrower’s monthly mortgage payments.
The homeowners assistance program is provided under the Emergency Economic Stabilization Act of 2008. It’s designed to help homeowners who are in urgent need of a more affordable mortgage. Specifically, it increases the loan-to-value ratio to 96.5 percent for some properties, and simplifies the process to remove subordinate liens by permitting upfront payments to lien holders. It also allows lenders to extend mortgage terms from 30 to 40 years, thus reducing monthly payments.
A key objective of the improvemenets is to encourage lenders to take a hard look at this program before proceeding with foreclosures. And it will provide families with another resource to refinance into a loan they can afford. Discuss details with your mortgage lender or broker.
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