FHA Hope for Homeowners Program Initiated this Month
The Federal Housing Administration’s (FHA) new Hope for Homeowners program, initiated on Oct. 1, has been welcomed by NAHB as a means for insuring new, more affordable mortgages for home owners who are struggling with burdensome payments on their current home loans.
Under the program, the holder of a troubled mortgage must agree to accept, as payment-in-full, an amount equal to 87% of the current value of the mortgaged property. The borrower then receives a new, FHA-insured mortgage that represents 90% of the home's current value, with the 3% balance going to cover the borrower's upfront FHA mortgage insurance premium.
The home owner is then responsible for an annual mortgage insurance premium of 1.5%.
Eligible borrowers must meet a mortgage payment-to-income test and agree to share equity gains on their home with the federal government.
The recently enacted housing stimulus legislation, the Housing and Economic Recovery Act of 2008, provided FHA with an additional $300 billion in mortgage insurance authority to operate the new program for the next three years.
For more information on the program, click here or contact David Ledford at 800-368-5242 x8265.
< Previous Article |
Next Article >
[return to top]
|
