This week we are going to continue our discussion about the vast opportunities offered by Making Home Affordable to help homeowner’s avoid foreclosure.  This weeks’ topic is REFINANCING. 

If you are a homeowner and would like to take advantage of the historically low interest rates to get into a more “AFFORDABLE” or “STABLE” fixed rate mortgage, Making Home Affordable may have a refinancing product that might be perfect for you.

HOME AFFORDABLE REFINANCE PROGRAM (HARP)

If you are current on your mortgage and unable to refinance your home because you owe more than what your home is actually worth, then you may be eligible to refinance through HARP.  This program is designed to homeowners refinance into a new affordable mortgage.  The HARP loan is a new loan and will require an application and underwriting process.  In addition, loan refinance fees will apply.  ELIGIBILITY REQUIREMENTS:

• YOUR MORTGAGE MUST BE OWNED OR GUARANTEED BY FANNIE MAE OR FREDDIE MAC
• YOU DO NOT HAVE AN FHA, VA OR USDA LOAN
• YOU ARE CURRENT ON YOUR MORTGAGE AND HAVE NOT BEEN MORE THAN 30 DAYS LATE IN THE PAST YEAR
• YOU OWE MORE THAN WHAT YOUR HOME IS WORTH AND YOUR MORTGAGE DOES NOT EXCEED MORE THAN 125% OF THE CURRENT MARKET VALUE OF YOUR HOME
• THE REFINANCE WILL IMPROVE THE LONG TERM AFFORDABILITY OR STABILITY OF YOUR MORTGAGE
• YOU HAVE THE ABILITY TO MAKE THE PAYMENTS

FOR ADDITIONAL INFORMATION:

• Visit FANNIEMAE.COM or call (800) 7FANNIE
• Visit FREDDIEMAC.COM or call (800) FREDDIE OR EMAIL BORROWER_OUTREACH@FREDDIEMAC.COM
• You can also contact a HUD approved housing counselor at (888) 995-4673

FHA REFINANCE FOR BORROWERS WITH NEGATIVE EQUITY (FHA SHORT REFINANCE):

If you are current on your mortgage, but owe more than what your home is worth, the FHA Short Refinance may be an option that your lender may consider.  If your current lender agrees to participate in this program, they will be required to REDUCE THE AMOUNT YOU OWE ON YOUR FIRST MORTGAGE TO NO MORE THAN 97.75% OF YOUR HOME’S CURRENT VALUE.  ELIGIBILITY REQUIREMENTS:

• YOUR MORTGAGE IS NOT OWNED OR GUARANTEED BY FANNIE MAE, FREDDIE MAC, FHA, VA OR USDA
• YOU OWE MORE THAN WHAT YOUR HOME IS WORTH
• YOUR ARE CURRENT ON YOUR MORTGAGE PAYMENTS
• YOU OCCUPY THE HOME AS YOUR PRIMARY RESIDENCE
• YOU QUALIFY FOR THE NEW LOAN UNDER STANDARD FHA UNDERWRITING REQUIREMENTS
• YOUR TOTAL DEBT DOES NOT EXCEED 55% OF YOUR MONTHLY GROSS INCOME
• YOU MUST NOT HAVE BEEN CONVICTED WITHIN THE LAST 10 YEARS OF FELONY LARCENY, THEFT, FRAUD OR FORGERY, MONEY LAUNDERING OR TAX EVASION, IN CONNECTION WITH A MORTGAGE OR REAL ESTATE TRANSACTION

FOR ADDITIONAL INFORMATION:

• CONTACT FHA NATIONAL SERVICING CENTER (877) 622-8525 OR HUD.GOV/OFFICES/HSG/SFH/NSC/NSCHOME.CFM
• You can also contact a HUD approved housing counselor at (888) 995-4673

TREASURY/FHA SECOND LIEN PROGRAM (FHA2LP)

If you have a second mortgage and your lender on your first mortgage has agreed to participate in the FHA Short Refinance, you may qualify to have the SECOND MORTGAGE on the same loan REDUCED OR ELIMINATED.  If the lender on your second mortgage agrees to participate, the total amount of your mortgage debt after the refinance cannot exceed 115% of your home’s current value.  ELIGIBILITY REQUIREMENTS:

• YOU QUALIFY FOR FHA SHORT REFINANCE
• YOU OBTAINED YOUR MORTGAGE ON OR BEFORE JANUARY 1, 2009
• YOU MUST NOT HAVE BEEN CONVICTED WITHIN THE LAST 10 YEARS OF FELONY LARCENY, THEFT, FRAUD OR FORGERY, MONEY LAUNDERING OR TAX EVASION, IN CONNECTION WITH A MORTGAGE OR REAL ESTATE TRANSACTION

FOR ADDITIONAL INFORMATION:

• CONTACT FHA NATIONAL SERVICING CENTER (877) 622-8525 OR HUD.GOV/OFFICES/HSG/SFH/NSC/NSCHOME.CFM
• You can also contact a HUD approved housing counselor at (888) 995-4673
• CLICK HERE for a list of participating mortgage companies.

The eligibility requirements provided in this article are for guidance only. Eligibility criteria may vary from lender to lender.  Contact your mortgage company to verify eligibility requirements and to see if you qualify. 

Tammie Seldon
Distressed Property Expert
Atlanta Property Shoppe at Keller Williams Realty
Office: 404-419-3696
Fax: 678-668-8060
Website: www.AtlantaPropertyShoppe.com
Website: www.MyLifeWithoutForeclosure.com
Email: Tammie@AtlantaPropertyShoppe.com
Twitter: @AtlPropertyShop