Howeowner Bailouts are happening!

FHA “Hope for Homeowners” Refinancing Program Launched

HUD’s new HOPE for Homeowners Program, under which the Federal Housing Administration (FHA) will insure refinance mortgages for borrowers who are having difficulty making their payments, began on October 1, 2008 and will end September 30, 2011. HUD has created a HOPE for Homeowners website with information for both borrowers and lenders.

The program is available only to owner-occupants of one-unit properties who can afford a new loan and will offer 30-year fixed rate mortgages. If borrowers are unable to refinance the entire amount due, banks will have to write down the existing mortgage to 90 percent of the new appraised value of the home. To be eligible, the property must be the borrowers primary residence (they can’t have an ownership interest in any other residential property, such as second homes and their existing mortgage has to have been originated on or before January 1, 2008, and they must have made at least six payments. In addition, they must be unable to pay their existing mortgage without help (as of March 2008, their total monthly mortgage payments due must be more than 31 percent of their gross monthly income).

Again, where is the press on the one? If you know someone who needs this program, send this blog to him/her.

Adam Pasquale, Achieva Realty