Do you owe more than your home is worth?
There are programs available for Home Owners who Live in their home and are current on their mortgage but owe more than their home is worth.
Short Refinance. Two programs are available. One for homeowners who have an FHA loan that is current, and one for home owners who have a non FHA loan who are current but the loan will be refinanced into an FHA loan.
Both options are for Owner occupied homes only.
FHA Streamlined loans do not offer a principal reduction, however you will end up with a lower payment by reducing your interest rate to todays interest rate. Typically no appraisal is needed. Fairly easy process. You have to be current on your loan no missed payments for last 12 months.
Next program is for Non FHA home owners this should end up getting you a principal reduction to the current market value so If you owe $550,000 on your first but your home is worth $525,000 you may end up with a new loan at 97% of current market value!!!.
Lenders are comming out with new programs all of the time. There are Principal Reduction Alternatime Modifications as well. Meaning, the typical Waterfall of getting the homeowner to 31% of their gross may now include a principal reduction.
Typically the lender will not automatically reduce the principal they will have the home owner pay for a few years on a payment that does not include principal then you will get an adjustment. they will offer it in thirds. After making payments ontime you will end up with a loan at current market value!! Perfect. this is to stop owners from getting a principal reduction and selling.
Streamlined Refinance , FHA Chris Jensen Bank of Commerce 925 872 2626
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