The Bush Administration announced the launch of the so-called “Hope for Homeowners” program today aimed at helping more at-risk borrowers stay in their homes.
The program, initially approved back in July, will allow borrowers struggling to keep up with monthly mortgage payments refinance into sustainable 30-year fixed-rate mortgages, so long as the loan amount doesn’t exceed $550,440.
It is only available for owner-occupied properties who do not own any other properties, such as second homes or investment properties, and the new mortgage must not exceed 90 percent loan-to-value of the new appraised value.
Additionally, the borrower must be able to prove that their current mortgage is unaffordable, and as of March 2008, their total monthly mortgage payment must have exceeded 31 percent of their gross monthly income.
In order to be eligible, the existing mortgage must have been originated on or before January 1, 2008, and six payments must have been already been made.
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