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Who is helped by the Hope For Homeownership Program? Home owners who have owned their home and no longer can make the payments in a timely manner. People who purchased their homes under the Sub-Prime, high interest rate, interest only, style loan programs. Home owners who currently own their homes and the values have dropped dramatically in value and currently are paying mortgage payments based on high loan amounts, where they owe more than the home is worth. [ask for specific definitions and details regarding the FHA loan guidelines related to this program]. What will this FHA Program cost me? This FHA program is similar to current FHA Loan programs. Your loan cost can be paid in the new loan amount or out of pocket, based on the FHA mortgage lending requirements for this program. Your lender can explain the details. I have bad credit can I still get help? FHA looks at an array of qualifying factors when approving someone for an FHA loan. FHA has what is called "traditional underwriting" and this underwriting method allows for people with less than perfect credit to become approved outside of an electronic underwriting system. Underwriters look at a person(s) ability to pay as well as other factors in determining a loan approval. Your loan officer can assist you in supplying the correct information needed to get approved under this method. What if I owe more than my home is worth? This FHA approved loan program was established to help those who no longer have any equity in their home. You can owe more in your current loan program than what the house is worth and still get approved under this loan program. Contact your FHA approved loan officer to get more information and get started. Why would my current lender accept taking less money? Mortgage lenders across America are taking a terrible hit on their financial books since they have more foreclosures than they can handle. Each foreclosure they have has to been sold in the market place. When a foreclosure is place on the market by a bank, the bank has to pay the listing agent and buyer's agent up to 6% commission. This amount of money is an additional sum lost on top of what the house is currently worth. Home prices have continued to decline as more and more foreclosure properties are placed into the retail real estate marketplace. Lenders carry the holding costs as well as many other costs while waiting for the property to be sold. The cost can be enormous. It is more cost effective for many lenders to accept the terms offered by the FHA program.
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