Apply to Refinance under FHA, 90% of todays value Housing and Economic Recovery Act
FHA Mortgage Lender, FHA Mortgage Programs in Alabama, California, Florida, Indiana, Kentucky, Louisiana, Maryland, Mississippi, Missouri, New Mexico, Pennsylvania, South Carolina, Tennessee, and Texas
www.FHAmortgagePrograms.com to Refinance 90% Appraised Value, Housing and Economic Recovery Act of 2008 FAQ
Apply to Refinance to 90% of Appraised valueHousing and Economic Recovery Act Alabama, California, Florida, Indiana, Kentucky, Louisiana, Maryland, Mississippi, Missouri, New Mexico, Pennsylvania, South Carolina, Tennessee, and Texas
Housing and Economic Recovery Act of 2008 FAQ
Q: When will the FHA Housing recovery program begin?
A: The new FHA housing initiative to save the banking system and restore confidence in real estate values will begin on October 1, 2008 and sunset on September 30, 2011. Homeowners now in danger of losing their homes should not wait to contact their loan servicers and should begin applying for federally insured mortgages now. Give us a call 1-800-570-0448, visit http://www.fhamortgageprograms.com and use our quick application to find out more about the FHA programs available. We provide FHA loans in Alabama, California, Florida, Indiana, Kentucky, Louisiana, Maryland, Mississippi, Missouri, New Mexico, Pennsylvania, South Carolina, Tennessee, and Texas
Q: How will the new law help homeowners keep their homes and help lessen the financial burden?
A: Through the (FHA) Federal Housing Administration , an estimated 500,000 borrowers struggling with mortgage payments who owe more than the home is currently worth will be able to refinance for 90% of today's current appraised market value making it more affordable. The new FHA program offers government insurance to lenders who voluntarily reduce the debts owned by borrowers on mortgages for at risk homeowners to at least 90% of today's current market value.
Q: Who is eligible for the New FHA Mortgage Program? A: To be eligible to participate in the new FHA refinance program, a borrower must:
- Have a loan on a home owner occupied as a principal residence. This program is not available to Investors or speculators who own second homes cannot participate in this program.
- Borrowers who have a monthly mortgage payment greater than at least 31 percent of the borrower's total monthly income, as of March 1, 2008.
- Certify that he or she has NOT intentionally tried to defaulted on an existing mortgage, and did not obtain the current loan fraudulently.
- Must Not have been convicted of fraud
Q: How can a homeowner get more information to access this new program?
A: Homeowners or a servicer of an existing eligible loan need to contact an FHA approved lender such as 1st Continental Mortgage 954-391-8387 or apply online using our quick application right now to get experienced professional and friendly mortgage service from 1st Continental Mortgage. will determine the size of a loan that a borrower can reasonably repay and that meets the requirements of the program. If the current lender or mortgage holder agrees to write-down the amount of the existing mortgage and make the new loan affordable, the FHA lender will pay off the discounted existing mortgage. Loans provided under this program must be 30-year fixed rate loans.
Q: Are lenders required to participate in this program?
A: No. The program is completely voluntary for lenders willing to provide financing.
Q: How does this law help neighborhoods that have been hit by falling prices and rapid foreclosure?
A: The impact of the US mortgage crisis has not been isolated to individual borrowers or investors; the problem has been felt broadly by neighbors, communities, and governments across the nation. The law will strengthen neighborhoods hardest hit by the foreclosure crisis by providing $4 billion in Community Development Block Grants to states and localities to buy a massive amount of foreclosed homes and rehabilitate foreclosed properties, and stabilize the countries housing market.
Q: Will this law be a bailout for those who speculated?
A: No. the program is designed to keep families in their homes.
- Only primary residences (Homesteads) are eligible: NO speculators, investment properties, second or third homes can be refinanced.
- Investors and lenders must take big losses first in order even to participate. The owner of the old mortgage can get a maximum of 90% of today's current value of the home (which presumably will be considerably less than the value of the original loan). In many cases the loss will be significantly greater, 10% is the minimum.
- In addition, participating lenders must waive any penalties or fees, and help pay for the origination and closing costs of the new loans.
- Homeowners will have seen the equity in their homes disappear before being able to refinance under the new FHA program. In addition, the FHA will get a portion of any future profits on the house, to make sure the government recoups its investment over the long run.
Q: Will this new FHA program reward families who bought homes they could not afford?
A: Many homeowners facing foreclosure were misled, or were deceived, and were in many ways the victims of unfair lending practices.
To prevent future abuses by lenders, this law will establish a nationwide loan originator licensing and registration system to set minimum standards for all residential mortgage brokers and lenders. The new FHA programs will also strengthen mortgage disclosure requirements to help ensure that borrowers understand their mortgage loan terms.
Q: How will these new FHA mortgage programs make it more affordable to own a home?
A: There are a number of provisions that will make homeownership more affordable for homebuyers:
- FHA mortgage programs create a refundable tax credit for first-time homebuyers that works like an interest-free loan of up to $7,500 (to be paid back over 15 years).
- FHA mortgage programs will grants states over $10 billion of additional tax-exempt bond authority in 2008 that can be used to refinance subprime loans, making loans to first-time homebuyers and to finance the building of affordable rental housing.
- FHA mortgage programs will raises conforming loan limits for the FHA, Fannie Mae and Freddie Mac to $625,500. Because of the high cost of housing in California, a majority of the state's residents were previously shut out from these programs. Raising these loan limits will lead to lower interest rates on some loans, greater refinancing opportunities, and enable more borrowers in high cost areas to avoid the type of nontraditional and frequently abusive loans that led to the current crisis.
- FHA mortgage programs provide couples using the standard deduction with an additional $1,000 deduction for property taxes ($500 for individuals).
Q: Does the new FHA law provide help to those who still cannot afford to own a home?
A: Yes. The bill includes a number of provisions to increase the supply of affordable housing,
- The bill creates a new permanent affordable housing trust fund - financed by Fannie Mae and Freddie Mac and not by taxpayers - to fund the construction, maintenance and preservation of affordable rental housing for low and very low-income individuals and families nationwide in both rural and urban areas.
- In addition, the legislation provides a temporary increase in the Low-Income Housing Tax Credit and simplification of the credit to help put builders to work to create new options for families seeking affordable housing alternatives.
If you are in Alabama, California, Florida, Indiana, Kentucky, Louisiana, Maryland, Mississippi, Missouri, New Mexico, Pennsylvania, South Carolina, Tennessee, and Texas
homeowner and would like to qualify for the Housing and Economic Recovery Act of 2008 Call 954-391-8387 or apply online using our quick application right now to get experienced professional and friendly mortgage service from 1st Continental Mortgage.
Alabama, California, Florida, Indiana, Kentucky, Louisiana, Maryland, Mississippi, Missouri, New Mexico, Pennsylvania, South Carolina, Tennessee, and Texas
FHA Loan Information
When considering the FHA loan program, there really are a number of issues which you should take into consideration. Give an expert 1st Continental Mortgage loan professional a call today at 1-888-427-5442 to discuss your situation. There is no obligation, and your information is treated in strictest confidence!
One of the most important issues relevant to the FHA Loan is in fact credit. While credit score is no factor, your credit quality is. The fact is, you're better off having no credit history, than having recent bad credit history. Primarily, an underwriter will need to know what caused any problems you might have had in the past, to ensure you have addressed and rectified these financial matters. If more recent, within the past 12 months, then we have a much more sophisticated process for getting a pre-approval. You can check out our Credit Repair section and the FHA Guidelines section for more details.
The second issue to give consideration to is the FHA loan limits. The fact is, there are not any Jumbo or Super Jumbo mortgage programs with FHA. These programs are not designed for these types of luxury properties, so you'll want to be certain you home, or your planned purchase amount, falls within the FHA loan limits.
With a refinance or FHA purchase, yes, the FHA closing costs can sometimes be $500 to $1000.00 more per month. There is also the issue of up front MIP (FHA mortgage insurance premiums) which will add to the costs to close, but this amount is financed by the lender. Before you get to discouraged, keep in mind that PMI (private mortgage insurance) is twice as expensive in your monthly payment, and is so because you're not paying any of it up front. Further, the PMI does NOT protect you, it protects only the lender. MIP with the FHA also protects only the lender, however, with the FHA loan comes government protections for you that you will NEVER get with a conventional or bad credit loan.
When rates are going up, typically, the FHA loan rates are lower. Why? It traditionally takes 3 to 5 business days for the rates to react to the market. So, when rates are going down, naturally, you have to wait before locking an FHA loan to give them time to catch up. Otherwise, FHA loan rates are typically as low as traditional interest rates in the conventional loan market.
We've taken time to attempt to help you understand all of the real negatives associated with the FHA loan. The fact is, the FHA loan program offers home buyers and homeowner, far more than any other program today. Most importantly, the FHA loan program offers you security and piece of mind. Something you can't put a price on. Give us a call today to learn how a FHA home loan can benefit your family.
Answers to Mortgage Questions
Whether Refinancing or Buying, We
Deliver Good Answers to Great Questions!
I need a mortgage. Why should I do business with you?
What is a Home Loan?
What is a Mortgage?
What is Refinancing?
What is FHA?
What is HUD?
What is Sub Prime?
What is a Lender? Do I need a Lender?
What is a Broker? Should I use a Mortgage Broker?
What is a Mortgage Originator?
What is a Mortgage Loan Processor?
What is a Mortgage Underwriter?
What is a Pre-Approval Letter?
What is a Mortgage Commitment?
What do I need to apply for a mortgage?
What is the difference between a fixed and adjustable rate mortgage?
Can I buy a house using a FHA Loan?
How much mortgage do I qualify for using an FHA Loan?
Does the FHA loan impact how much house I can qualify to buy?
How do I qualify for a home mortgage using the FHA program?
What is the difference between a regular mortgage and a FHA Loan?
Do you have to improve your credit score to get a better rate with FHA?
What is the importance of credit when you apply for an FHA Loan?
I heard the FHA loan is only for 1st time buyers, is that true?
My mortgage company says I should not consider the FHA program. Why should I listen to you and not them?
I want to improve my mortgage term. Can I refinance my FHA loan now?
How soon can I refinance to a new home loan?
How often can I refinance my home?
How can I refinance my home when I have credit problems?
Where can I refinance my home if I'm late on my mortgage?
Refinance to 90% of Appraised valueHousing and Economic Recovery Act Alabama, California, Florida, Indiana, Kentucky, Louisiana, Maryland, Mississippi, Missouri, New Mexico, Pennsylvania, South Carolina, Tennessee, and Texa
For More Information Contact Thomas Martin direct at 954-391-8387 or e mail me at Thomas@FHAmortgagePrograms.com .
1st Continetnal Mortgage is licensed to origionate FHA loans in Alabama, California, Florida, Indiana, Kentucky, Louisiana, Maryland, Mississippi, Missouri, New Mexico, Pennsylvania, South Carolina, Tennessee, and Texa