| What is the HOPE for Homeowners Program? |
This is a new program for borrowers at risk of default and foreclosure. The program provides new, 30-year, fixed rate mortgages that are insured by the Federal Housing Administration (FHA).
It may help you refinance your mortgage into a more affordable payment.
H4H is voluntary. Both lender(s) and borrower(s) must agree to participate. |
| When does H4H Begin? |
The program begins October 1, 2008 and ends September 30, 2011. |
| Who is eligible? |
You should contact your lender to determine eligibility, but you may be eligible if, among other factors:
- The home is your primary residence, and you have no ownership interest in any other residential property, such as second homes.
- Your existing mortgage was originated on or before January 1, 2008 and you have made at least six payments.
- You are not able to pay your existing mortgage without help.
- As of March 2008, your total monthly mortgage payments due were more than 31 percent of your gross monthly income.
- You certify that you have not been convicted of fraud in the past 10 years, intentionally defaulted on debts; and did not knowingly or willingly provide material false information to obtain existing mortgage(s).
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| Who should I contact? |
FHA does not accept loan applications. Borrowers seeking help should contact their lender, another FHA-approved lender, or a housing counselor to apply or learn more about their options. |
| How much can I borrow? |
Your new H4H mortgage will be no more than 90% of the new appraised value of your home with the lender essentially writing down your current mortgage to that amount. |
| What costs do I have to pay? |
- The new mortgage, if approved, will replace all of the current mortgages on your home. You will not owe any payments, fees or debts on mortgages you now hold.
- You must agree to share both the equity created at the beginning of this new mortgage and a portion of any future appreciation in the value of your home.
- In addition to an upfront mortgage insurance payment of 3%, you will pay a 1.5% annual mortgage insurance premium on your outstanding mortgage balance. This premium will be included in your monthly payments.
- You will need to pay closing costs on the loan. You will receive a Good Faith Estimate of these costs.
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| Will my new interest rate be lower than my current rate? |
The interest rate for the new mortgage will be based on current market interest rates and will be provided by the lender. |
| I currently have a second mortgage. If needed, can I take out a second mortgage under this program? |
You cannot take out a second mortgage for the first five years of the loan, except under certain circumstances for emergency repairs. |
| How can I learn more about the program and start the application process? |
- Review the Frequently Asked Questions page at www.fha.gov to learn more about the program.
- Contact an FHA-approved lender to apply. You can find a list of lenders at www.fha.gov
- Contact a Housing Counselor. A list of Housing Counselors can be found at www.fha.gov
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www.MortgageAdvisor.info & www.GregZaccagni.com
http://www.hud.gov/hopeforhomeowners/consumerfactsheet.cfm
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Hi,
For the upfront premium, say you have a $300,000 loan, can the 3% be folded into the loan or does the borrower have to come up with that out of pocket?
Thanks