FHA has decided to introduce a short refinance program to help the struggling homeowners. This program has been specially designed for those individuals who are going through home mortgage problems. Glance through the article to gather information on FHA short refinance program. FHA Short refinance – A new hope for the struggling homeowners- Obama administration has introduced FHA short refinance program to assist the individuals who are finding it difficult to make payments on their home mortgage loans. The goal of this program is to help the homeowners who have been severely affected by the downturn in the housing market but are somehow current on their home loan payments.
Still, many of them who are actually aware about the program do not have the idea on how to successfully proceed under it. The result is that there are too many myths than realities. The very first and strong myth is that mortgage refinancing program will help house flippers and speculators to make their big chunk. However, this is not true anyways. On the contrary if the homeowner wants to become successful in the loan modification process, it is very important for the homeowner to live in the home for which he/she wishes to get the mortgage modified. The clear purpose of federal mortgage refinancing program is to help the struggling homeowners to come out easily from the mortgage lending and not help the investors by any means.
Understanding the basics of HAMP Loan Modification is a necessity especially if the applicants are looking to meet the criteria set for qualifying for the loan. Basics include the terms and conditions and methods of applying for the home affordable refinance program. Different banks and lending institutions will have differing requirements for qualification. It is very important to look around and be aware about the basics and other requirements before applying for the HAMP Loan Modification.
The property should be the primary residence of the homeowner. In short, the homeowner should be living in the home. Homeowners need to have a decent credit score. Homeowners need to have minimum 500 credit score to be eligible for the short refinance program. Apart from that, homeowners will have to fulfill the general FHA underwriting guidelines. The loan-to-value ratio must be below 97.5%. If the homeowners have 2 mortgages, then the overall loan-to-value ration should be less than 115%.
A letter of hardship sent to the lending institution may also work in your favour as it will clarify your financial stature including your income and expenses, monthly mortgage payment.
The residence of the owner should be the primary residence and the first mortgage loan should be dated prior to 1st January, 2009.
The unpaid principal amount of the mortgage must be less than or not more than $ 729, 750.
If your previous mortgage loan has been modified one cannot qualify for such loan modification programs again.
Learn more about Obama Mortgage Relief Plan Qualifications.
