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1st Continental Mortgage FHA is FHA Approved Lender providing FHA assistance in the states of Alabama, California, Florida, Indiana, Kentucky, Louisiana, Maryland, Mississippi, Missouri, New Mexico, Pennsylvania, South Carolina, Tennessee, and Texas
Apply to Refinance to 90% of Appraised value in 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.
Example:
- 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
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