The new FHA short refinance program was launched in September, 2010. It is intended to help struggling homeowners who are unable to make monthly payments. This is the reason that they owe more on their home than its recent worth or price. The Obama administration has launched this program to help three-to-four million homeowners to stay in their homes over the next few years. The new FHA guidelines have been introduced so that the short FHA refinance is possible.
Guidelines of Refinance Program
The new guidelines of the FHA Short Refinance option makes upside down mortgage into a right side up one. The basic criteria are as follows:
- The property must be the homeowner's current residence.
- The homeowner should have a credit score equal to or greater than 500. And he must qualify for the new loan under standard FHA underwriting requirements.
- The existing loan which needs to be refinanced should not be insured loan under FHA program.
- The refinanced FHA-insured first mortgage must have a loan-to-value ratio of not more than 97.75 percent.
To facilitate the refinancing, the Obama administration will provide incentives to existing second lien holders. There are several lenders who would help you in getting the mortgage refinance. You can find them by contacting a mortgage broker who can assist you in locating the right lender. These lenders will make sure that you attain the best rates. You should also have all necessary documents before you shop around for our loan. You should have a copy of your current mortgage statement, HOA documents, your last two pay stubs, your last two years of tax forms, verification of employment forms.
No comments:
Post a Comment