This is a new program for borrowers at risk of default and foreclosure. The program provides new, 30-year, fixed rate mortgages that are insured by the Federal Housing Administration (FHA).
It may help you refinance your mortgage into a more affordable payment.
H4H is voluntary. Both lender(s) and borrower(s) must agree to participate.
You should contact your lender to determine eligibility, but you might be eligible if:
- The home is your primary residence, and you have no ownership interest in any other residential property, such as second homes.
- Your existing mortgage was originated on or before January 1, 2008 and you have made at least six payments.
- You are not able to pay your existing mortgage without help.
- As of March 2008, your total monthly mortgage payments due were more than 31 percent of your gross monthly income.
- You certify that you have not been convicted of fraud in the past 10 years, intentionally defaulted on debts; and did not knowingly or willingly provide material false information to obtain existing mortgage(s).
Here is a little more information on the HOPE program and some of the costs that might be involved.
- The new mortgage, if approved, will replace all of the current mortgages on your home. You will not owe any payments, fees or debts on mortgages you now hold.
- You must agree to share both the equity created at the beginning of this new mortgage and a portion of any future appreciation in the value of your home.
- In addition to an upfront mortgage insurance payment of 3%, you will pay a 1.5% annual mortgage insurance premium on your outstanding mortgage balance. This premium will be included in your monthly payments.
- You will need to pay closing costs on the loan. You will receive a Good Faith Estimate of these costs.
- Review the Frequently Asked Questions page at www.fha.gov HOPE
- Contact an FHA-approved lender to apply. You can find a list of lenders at FHA
This is information from the government and something I definitely should be made available to you.
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