Really Care Realty
965 Ponderosa Ave. #25 Sunnyvale, CA
Friends,
Sustainable, Affordability Homeownership
This program will save thousands of people and keep them in their homes.
Hope for Homeowners maintains FHA's long-standing requirement that new loans be based on a family's long-termability to repay the mortgage.
FHA only allows owner-occupants to be eligible for FHA-insured mortgages.
Borrowers must also meet the following eligibility criteria:
Their mortgage must have originated on or before January 1, 2008;
Their mortgage debt-to-income must be at least 31 percent
They cannot afford their current loan
They did not intentionally miss mortgage payments
They do not own second homes.
Features of FHA-insured loans under the new program include:
30-year, fixed rate mortgage
Maximum 90 percent loan-to-value ratio
No prepayment penalties
$550,440 maximum mortgage amount;
Extinguishment of any subordinate liens
new home appraisals from FHA-approved appraisers.
HUD, Treasury, FDIC and the Federal Reserve will form the Congressionally-mandated Board of Directors and work together to establish additional program standards. Voluntary Lender Participation FHA will continue to offer lenders an alternative to foreclosing on borrowers. Similar to FHASecure's recent expansion, lenders will be encouraged to write-down the outstanding mortgage principal balances to 90 percent of the new value of the property. In many cases, reductions in principle will cost lenders less than the losses associated with foreclosure.
Market Stability and Liquidity - By continuing to slow the rate of foreclosures, this program will support FHA's existing effort to stabilize local housing markets.
From September 2007 to June 2008, FHA has guaranteed more than $93 billion of mortgage capital. Funding FHA will insure up to $300 billion in new loans. Borrowers will pay an upfront premium of 3 percent of the original mortgage amount and an annual premium of 1.5 percent of the outstanding mortgage amount.
Any additional costs incurred by FHA will be reimbursed by Fannie Mae and Freddie Mac. Program Timeline The program will last from October 1, 2008 through September 30, 2011.
Since September 2007, FHASecure has helped more than 290,000 families obtain safer, more affordable mortgages. FHASecure is on pace to help 500,000 families by the end of the year.
