The Obama Administration’s Making Home Affordable Program was created to help millions of homeowners refinance or modify their mortgage payments to a level that is affordable now as well as in the future. If you are looking for a way to make homeownership more affordable, the Home Affordable Refinance or the Home Affordable Modification may be able to help.
Home Affordable RefinanceAre you paying your mortgage on time, but are unable to refinance to a lower interest rate, perhaps due to a decrease in the value of your home? A Home Affordable Refinance may be the solution. This refinance option is designed to help
homeowners whose loans are held by Fannie Mae or Freddie Mac refinance into more affordable mortgages.
Home Affordable ModificationAre you struggling to make your monthly mortgage payment, perhaps because your interest rate has increased or you now have less income? The Home Affordable Modification may be the best option for you. This modification option is
intended to help provide qualified homeowners with mortgage payments they can afford.
Take Action TodayIf you think you may be among the millions of homeowners who are eligible for the Making Home Affordable Program, act now.
• For more information about the Making Home Affordable Program, visit www.MakingHomeAffordable.gov, an official web site of the U.S. government.
• To determine if you have a Fannie Mae or Freddie Mac loan:
Fannie Mae: www.FannieMae.com/loanlookup or 1-800-7FANNIE (Monday – Friday, 8 a.m. to 8 p.m. ET)
Freddie Mac: www.FreddieMac.com/mymortgage or 1-800-FREDDIE (Monday – Friday, 8 a.m. to 8 p.m. ET)
• Contact your mortgage lender – the company to which you send your monthly mortgage payment – to determine if you qualify.
• To speak with a housing counselor:
Call the Homeowner’s Hope™ Hotline at 1-888-995-HOPE (4673). (Available 24/7 in English and Spanish. Other languages by appointment.)
Find a HUD-approved housing counselor at www.hud.gov. These services are free!
• If you are scheduled for foreclosure, contact your mortgage lender or a housing counselor immediately. Your mortgage lender may postpone the foreclosure while your loan is evaluated.
Beware of Foreclosure Rescue Scams• Assistance from a HUD-approved housing counselor is FREE. Beware of anyone who asks you to pay a fee in exchange for counseling or a loan modification.
• Beware of people who pressure you to sign papers immediately.
• Do not sign your deed over to anyone unless you are working directly with your mortgage lender to forgive your debt.
• Never make a mortgage payment to anyone other than your mortgage lender without their approval
IF YOU ARE INTERESTED IN RECEIVING INFORMATION ABOUT SHORT SALES AND FORECLOSURES, PLEASE CONTACT ANNA-LISE TROUP AT (520) 906-5659.
# posted by
Anna-Lise Troup @ 2:23 PM
By Octavio Nuiry, RealtyTrac
Starting in early summer, the Federal Housing Administration is tightening lending standards in an effort to bolster its dwindling reserves. The new lending standards will make it tougher for some prospective buyers to purchase a home by requiring a higher down payment than the typical 3.5 percent for some borrowers, higher insurance premiums and reduced seller concessions.
Securing FHA-insured mortgages are attractive to borrowers because down payments are only 3.5 percent. Most conventional loans now require 20 percent down, keeping many creditworthy borrowers on the sidelines.
New Guidelines
The new rules — which are temporary and take effect this summer — come after more than a year of stringent standards from lenders. Among them:
•Better Credit Score — New borrowers will have to have a minimum credit score of 580 to qualify for a 3.5 percent down payment. Previously, there was no minimum score. Those with lower scores will have to make at least a 10 percent down payment. The average credit score of FHA-insured borrowers is 693.
•Higher Insurance Premiums — Buyers who get an FHA-insured loan will soon have to pay a higher initial insurance premium. The new premium will be 2.25 percent of the value of total loan amount, up from 1.75 percent now. A $100,000 mortgage would require a payment of $2,250, or $500 more. But buyers can roll the added cost into the loan amount.
•Reduction in Seller Concessions — Starting this summer, sellers will not be able to offer as much help to buyers to pay their closing costs. The maximum amount of assistance will drop to 3 percent of the value of the property, from the current 6 percent.
FHA removes anti-flipping rule
Another FHA rule change could help foreclosure-plagued markets like Las Vegas, Phoenix, Miami, Detroit and Los Angeles, making it easier for investors to “flip” houses to buyers who use FHA-insured loans.
Effective Feb. 1, the federal government will waive for one year an FHA anti-flipping rule that prohibits insuring a mortgage on a home owned by the seller for less than 90 days.
The new rule lets investors buy today and re-sell as quickly as possible. The move is to allow REO homes purchased by investors to resell as quickly as possible, helping stabilize real estate prices and revitalize neighborhoods after the U.S. housing market collapse.
This new rule will open up a new pool of homes to buyers. Waiving the 90-day flip rule is being heralded by many real estate investors as a boon to their ability to buy, rehab and resell foreclosed homes on a more efficient time line.
# posted by
Anna-Lise Troup @ 8:54 AM
