FHA Refinance Loan Options for Homeowners. On June 1. 0th, 2. HUD issued Mortgagee Letter 1. The letter provides instructions as to how to process cases during the phasing out of Hope For Home Owners (H4. H) program. This program was authorized under the Housing and Economic Recovery Act of 2. This program was effective for endorsements on or before September 3. When the sub- prime mortgage crisis reached its peak in the fall of 2. American housing market. The Emergency Economic Stabilization Act of 2. October 3, 2. 00. Homeowners, contact your existing lender and/or a new lender to discuss how you may qualify for the H4H program. The HOPE for Homeowners (H4H) program was created by Congress to help those at risk of default and foreclosure. Part of that new law includes a requirement to help qualified homeowners avoid foreclosure through federal loan guarantees and credit enhancements. The HOPE for Homeowners act is designed to prevent qualified home owners from defaulting on their loans, and avert foreclosure. This is done through refinancing into affordable, fixed- rate mortgages. If you are in danger of defaulting on your home loan, it is very important to contact your lender immediately and request an evaluation of your situation. If you are able to qualify, your loan officer can help you begin the paperwork to prevent foreclosure. If you are already in discussions with the bank, your loan officer may suggest HOPE for Homeowners as a way to proceed. Am I Eligible? Homeowners may be eligible for HOPE for Homeowners program if they meet the following criteria as specified in the HOPE for Homeowners act 2. The original mortgage is dated on or before January 1, 2. The homeowner did not default on the original loan intentionally. The homeowner is not invested in multiple home loans. All information on the original mortgage is true (including income sources and job details)The homeowner has not been convicted of fraud. HOPE for Homeowners is not a simple refinancing program. While it does allow qualified borrowers who are stuck in variable- rate mortgages to refinance into affordable, fixed- rate mortgages, there is a trade- off known as equity sharing. What is Equity Sharing? NEW HOPE FOR HOMEOWNERS PROGRAM BEGINS ASSISTINGLENDERS AND HOMEOWNERS WITH. 2008 (EESA) or the Troubled Asset Relief Program (TARP), the HOPE for Homeowners (H4H) program administered by the Federal Housing. With fewer than 100 applications for FHA loans through Hope for Homeowners since the program's effective start date of Oct. 1, it was clear some 'meaningful changes' were needed. Housing and Urban Development. Is the HOPE for Homeowners (H4H) program still available? The H4H Program was effective for endorsements on or after October 1. General Refinance Info; Grant Programs; Housing Counseling. The HOPE for Homeowners (H4H) program was created by Congress to help those at risk of default and foreclosure refinance into more affordable, sustainable loans. Those who apply and are accepted for the HOPE program must agree to an equity sharing program. Equity is the difference between the amount of your original loan and the actual value of the home; if you sell or refinance your home after entering the HOPE program, under the terms of HOPE you are required to share any equity with the FHA. How much the government receives depends on how long you wait to sell or refinance. If you sell in the first year of your participation in HOPE, the government receives 1. There is a sliding scale after the first year; Year two. If there is no equity or negative equity at the time of sale or refinancing, the FHA receives nothing. What are the Benefits of Hope? The benefits of participating in HOPE for Homeowners include; Keeping your home. Getting a 3. 0- year fixed- rate mortgage (extendable to 4. Lower monthly mortgage payments which do not change. The 3. 0- year loan is extendable in some situations. Any type of mortgage is eligible for refinancing under the H4H Program, including. 3 Responses to “HOPE For Homeowners (H4H). The HOPE for Homeowners act was created to help protect qualified homeowners from foreclosure by preventing loan defaults. Extending the terms to 4. There are requirements and restrictions on these extended loans. Check with your lender to see if you qualify for the 4. HOPE program. The HOPE for Homeowners program ran until September 2. FHA Loan Articles. Read About Mortgage News, FHA Updates, and Guidelines. Can I Still Get a First Time Homebuyer's Tax Credit? If you seek an FHA loan, time is very short to take advantage of the First Time Home Buyer's Tax Credit. Current guidelines have the plan expiring at the end of April, 2. Help for Struggling Home Owners from FHA and Homeowner Bailout Plan. New changes give more flexibility to loan servicers, plus new help for home owners who are stuck in homes that are worth less than what is owed on the property. There's also more help for unemployed home owners.
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