What Is The FHA Hope Program? – FHA Home Loan Guidelines
HOPE for Homeowners is organized and managed by the Administration or FHA Federal Housing, part of the US Department of Housing and Urban Development. The FHA mortgage rules is the largest insurer of the government mortgage lending. If the default owners on their loans, the FHA mortgage rules will pay the lenders. FHA’s hope for the homeowner program is a voluntary program.
Hope for Homeowners, or H4H, was set up in October 2008 and runs through September 30, 2011. The goal of the program is to provide help for struggling homeowners who can no longer afford their mortgages. The program is designed for borrowers who are near default and foreclosure on their loans. It gives them the option of refinancing to a mortgage loan insured by the Federal Housing Administration. The borrower and the mortgage lender must agree to participate in the program.
The program owners hope to borrowers with a new, 30-year fixed rate mortgage. This helps homeowners refinance their mortgages at more affordable rates. The new loan has a maximum ratio of the value of your home of 90 percent. The value of your home is evaluated by an FHA-approved appraiser. There are no prepayment penalties through the program and all subordinated privileges are cleared. However, lenders loans on your home must agree to participate in the program.
FHA assesses the long-term ability of a family to repay the mortgage before approving it for the program. Hope for homeowners also has a number of other eligibility factors. The mortgage of an owner must have existed on or before January 1, 2008 in order to qualify for the program. The mortgage debt over income must be at least 31 percent and the homeowner must not be able to pay his current loan. The FHA mortgage rules must determine that an owner has not intentionally missed mortgage payments and that the owner does not own a second home.
The new mortgage approved by the FHA will replace all previous mortgages on your home. You owe nothing on previous mortgages. You agree to share the capital created at the beginning of the new mortgage and any appreciation on your home with the FHA. If your new home is worth $ 200,000 and your mortgage is $ 180,000, then your capital is $ 20,000. The amount of FHA mortgage rules is responsible and the amount you are responsible for depends on when you sell or refinance your home. You can find a table to determine the amount at hud.gov. You must also pay an initial mortgage loan insurance payment of 3 percent and an annual premium of 1.5 percent. Finally, you must pay closing costs on the loan.
You cannot take a 2nd mortgage for the first 5 years of the loan by the owners program hope. The only exception is under convinced circumstances for emergency repairs. You cannot apply for the program through the FHA, but the agency has a list of approved lenders on its website. If you have declared bankruptcy, you should contact the person who handles your bankruptcy before applying for the H4H program.