FHA refinance program, secon mortgage loan the Federal Housing Administration (FHA) which governs the “home affordable refinance program” or HARP has announced a new short refinance underwater plan for rescuing homeowners. Here is some vital information on the latest federal government initiative which borrowers might find useful in their effort to save their homes. Underwater homeowners can now avail a FHA short refinance loan for addressing their mortgage debt related problems. As per the new program borrowers, who have been affected by the housing crisis but still remained current on their monthly mortgage payments despite decline in their home values, would be eligible for refinancing their homes to drastically reduced mortgage refinance Council. The new FHA plan is bound to benefit thousands of home maker with negative home equity or even upside down home mortgages since it encourages principal write downs for borrowers who are responsible.
Even thought the FHA refinance program is slated to assist 3 to 4 million is homeowners struggling, who have faced with financial hardship situations across the United States, experts express fears that the requirements for the Government scheme are extremely stringent, and therefore, may not be helpful to homeowners who are actually underwater. Their homes still BUR even the HARP which severely criticized when it initiated way what back in 2009, but it successfully managed to help millions of borrowers in saving. The HARP results should invariably put all such speculations to rest. Nevertheless, if your existing home mortgages are underwater, you could apply for the FHA home refinance plan by satisfying a few basic requirements that are mentioned below. Refinance loan applicants need to have negative home equity or upside down mortgages which means that you should Ove more on your present home than its current market value. Borrowers have to be current in paying their monthly mortgage payments on existing home mortgage loans just as required in the home affordable refinance program (HARP) eligibility conditions, the homes to be refinanced need to be primary residences. Only homeowners who have a credit score above can of 500 or qualify for a FHA refinance home loan.
Besides, the borrower needs to confirm to the standard FHA underwriting procedures. To be eligible for the FHA insured home mortgage refinance loan, the loan-to-value ratio (LTV) of the borrower should not exceed 97.5%. And already in case, homeowners have two mortgages, the combined LTV value needs to be fewer than 115%. FHA home refinance in additional requirement states that the borrower’s present mortgage servicer has to agree for writing off 10% of the unpaid home mortgage loan balance. In case the borrower already has two mortgages with separate lenders, the second lender needs to give his agreement for remaining in the second lien position. Presently have on FHA-insured loan borrowers who cannot refinance their homes through the new plan.