The Housing Rescue Bill and the FHA Refinance Loan

The Housing Rescue Bill and the FHA Refinance Loan

Before participating in this program, all subordinate liens (such as second loans, home Mortgage Foreclosure - Escape the Nightmare of Foreclosure loans, etc.) must be extinguished. This will have to be done through negotiation with the first lien holder.

F. 50% of any positive equity earned is paid to the FHA if the home sells or the borrower refinances after 5 years.

3. Other Requirements

Mortgage Insurance and Other Fees

The Up Front FHA ph4dge Insurance Premium that is required on all FHA Refinance Loans will change as part The Housing and Economic Recovery Act of 2008. The Monthly MI Rates have also been updated. The following FHA MI rates will begin on October 1, 2008 and will be effective for 12 months;

The borrower agrees to repay the following share of any home equity appreciation with the FHA when the home is sold or refinanced again;

Each new loan will be originated and underwritten on a case-by-case basis. To get approved, your income statements, bank accounts, credit scores and work history will be examined. A new appraisal must be performed on your home to determine Benefits of Student Loan Consolidation current value.

The details of The "HOPE for Bad Credit Tenant Loans - Manage Your Debts Act of 2008" are as follows:

D. 70% of any positive equity earned is paid to the FHA if the home sells or the borrower refinances within 4 years.

30 Year Note 0.55% - Refinance greater than 90% of the home's LTV. 0.50% - Refinance less than or equal to 90% of the home's LTV.

A. 100% of any equity earned is paid to the government FHA if the home sells or the borrower refinances within 1 year.

Existing Subordinate Liens

Monthly MI - Multiply the loan amount by the figure below and then divide by 12. The result is your Monthly Mortgage Insurance.

C. 80% of any positive equity earned is paid to the FHA if the home sells or the borrower refinances within 3 years.

Only owner-occupants who are unable to afford ph4dge.com mortgage payments are eligible for the program. No investors or investor properties will qualify. Homeowners must certify, under penalty of law, that they have not intentionally defaulted on their loan to qualify for the program and must have a mortgage debt-to-income ratio greater than 31% as of March 1, 2008. Lenders must document and Home Loans For People With Bad Credit Score borrowers' income with the IRS.

1. Eligible Borrowers

B. 90% of any equity earned is paid to the FHA if the home sells or the borrower refinances within 2 years.

FHA Up Front MIP - Required on all FHA Loans (Can be financed into loan amount).

In order to avoid a windfall to the borrower created by the new 90% loan-to-value FHA-insured mortgage, the borrower must share the newly-created equity and future appreciation equally with FHA. This obligation will continue until the borrower sells the home or refinances the FHA-insured mortgage. Moreover, the homeowner's access to the newly created equity will be phased-in over a 5 year period.

On October 1, 2008, new FHA Refinance Loan Guidelines will go into effect as part of The Housing and Economic Recovery Act of 2008. This new FHA Mortgage program is designed to help thousands of homeowners who are at risk of foreclosure in their current conventional or sub-prime home loans.

If it doesn't have positive equity, then you must contact your current lender and negotiate with them to reduce (write down) your current mortgage to 90% of its current appraised value. If your current lender agrees to the write down, then you will be able to proceed with the FHA refinance.

Note: The FHA requires a 3% Exit Fee of the Mortgage Principal Balance when the borrower sells or refinances the home again.

The FHA Refinance Loan Process

E. 60% of any positive equity earned is paid to the FHA if the home sells or the borrower refinances within 5 years.

2. Home Equity & Appreciation Sharing

15 Year Note 0.25% - Refinance greater than 90% of the home's LTV. Monthly MI is not required on an 15 Year FHA Refinance Loan with an LTV of 90% or less.

1.75% - Normal FHA 203(b) Refinance 1.5% - FHA Streamlined Refinance 3.0% - FHASecure (Refinance for high risk borrowers who are already delinquent on current mortgage)

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