*FHA has now come up with revised guidelines for the H4H program. We are waiting to have our lenders implement these changes. This program WILL be useful once we are able to process these loan for borrowers who are in default and have a true hardship. There is no minimum fico requirement.
*If you are current in your payments and have NEGATIVE equity and you were unable to refinance. You may qualify for a FHA Short refinance at 96.5% of current market value!
Minimum Fico is 620
I have been closing these Short Refinaces for the past 2 yrs. Your current Lender has to be willing to take a Short Pay-off. Contact me to discuss options.
below is the H4H HUD update!
HOPE for Homeowners Program - Comprehensive Guidance
MORTGAGEE LETTER 2009-43
The Helping Families Save Their Homes Act of 2009 amends the National Housing Act, providing for key changes in the HOPE for Homeowners (H4H) Program. The H4H Program is effective for endorsements on or before September 30, 2011. This Mortgagee Letter supersedes in their entirety Mortgagee Letters 2008-29, 2008-30 and 2009-03 and is effective for endorsements on or after January 1, 2010.
Key changes to the H4H Program:
Borrowers are ineligible if their net worth exceeds $1,000,000,
Borrowers must not have defaulted on any substantial debt in the last 5 years, The age of appraisal now follows standard FHA guidance,
Reduced mortgage insurance premiums,
Revised loan-to-value and debt-to-income ratios,
Maximum loan-to-value excludes the Upfront Mortgage Insurance Premium, Eliminated requirement for obtaining most recent two year tax returns, Eliminated special lender and underwriter certification,
Exit Premium replaces Shared Equity,
New note and mortgage replaces previous shared equity and shared appreciation notes and
Lenders must submit 5 test cases for pre-closing review by FHA.