About Government Refinance and Home Purchase Programs

Information and Updates on Government Mortgage Programs
Filed under HARP Program Loans or The Obama Refinance Program

See this document published over at MakingHomeAffordable.gov. It outlines the new FHA plans for underwater homeowners. Here are some excerpts from the document:

Today the Administration announced adjustments to Federal Housing Administration (FHA) programs that will permit lenders to provide additional refinancing options to homeowners who owe more than their home is worth because of large falls in home prices in their local markets. These adjustments will provide more opportunities for qualifying mortgage loans to be responsibly restructured and refinanced into FHA loans as long as the borrower is current on the mortgage and the lender reduces the amount owed on the original loan by at least 10 percent. This option should be available by the fall.

The new program is contingent on lenders voluntarily writing down the principal balance on these loans. It is not clear yet how many lenders will be interested in doing that or what specific incentives the new program will give the lenders to participate. We will continue to update you here as more information comes out.

Comments (0) Posted by G.R.A. Admin on Sunday, March 28th, 2010

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