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Government Home Loans FHA/VA/USDA in Tampa Florida

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Mortgage and Lending

Government Home Loans FHA/VA/USDA in Tampa Florida are still being used in most purchase transactions. I specialize in FHA, USDA, VA Loan products.

When it comes to less out of pocket expense at a rate that is competitive with other lenders such as the conventional types more people are choosing to go with the Govies; which are aka FHA, VA and USDA Loans

However lenders are not always willing to adopt into practice the new programs being passed down by HUD. Lets just say it would appear that this particular program isn't being accepted with open arm's on main street so far.

HUD recently launched a program aimed at helping people who are current on their mortgage loans; refinance to the lower prevailing rates being offered through FHA and VA Approved Lenders even if they are under water or up-side down on their mortgages due to reduced property values.

FHA Launched a Refinance Opportunity for Underwater Homeowners who are in good standing with their current Lenders. Current FHA insured loans are not allowed under this program.

Here is how the program is designed:

The program states that if a responsible homeowner can get his or her current lender to WRITE OFF or FORGIVE a minimum of 10% of the current loan balance; then they will do a loan for up to 97.5% LTV and 115% CLTV.

So if the balance is $300,000. the lender must agree to shave off a minimum of $30,000. of the borrowers loan balance. The problem lies in how willing will lenders be to do that for a loan that is currently being paid as agreed?

In the real world lenders are focused on mitigating current defaults rather than reducing the balances owed on loans that are in GOOD STANDING.

So far I have yet to find an FHA Lender who has adopted this program into their portfolio. It seems that in some cases at least there is a disconnect between what is being passed down by HUD and what works in the real world.

The program was designed to encourage principal write-downs for responsible borrowers. Unfortunately lenders have yet to embrace the write downs or the combined 115% LTV program itself.

I know this article has to do with REFINANCING but everyone probably knows someone personally that is in this situation and would like to use this particular program. What home owner who is current on their loan and owes more on their property than it is currently worth wouldn't want a 10% balance reduction as well as a 2% rate reduction? So my issue is the same as every responsible home owner; why isn't it being made available on main street?

For more information on Government Home Loans FHA/VA/USDA in Tampa Florida I can be reached by phone at 813-205-7958.

Properties located in the State of Florida only at this time. 

 

Posted by

Jim Poole

Senior Loan Officer NMLS #351358

813.205.7958 Mobile

jptampa@live.com 

 

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