What's In it for Me?
October 15, 2008
The current credit crisis has been the main topic of the U.S. media. Even the presidential race seems no longer to be front page news. While the current emergency measures are designed to stabilize the banking and brokerage industries, it hopefully will be successful which down the road will be a benefit to the main street home owners. Unfortunately, or fortunately, the availability of credit is a necessity for both businesses and individuals.
Somewhere in all the frenzy to save the credit markets, the earlier "Housing and Recovery Act of 2008" lost its front page status. However, this loan guarantee program became law on October 1, 2008. In the Inland Empire, until January 1, 2009, if your property is now appraised at approximately $515,000, you might be eligible for assistance from the Housing Rescue Program.
In order to qualify for assistance, borrowers must meet the following criteria:
1) The borrower must live in the home on which the mortgage was taken out;
2) The loan must have been issued between January 2005 and June 2007;
3) The borrower must be spending 31% of their gross monthly income on their mortgage as of March 1, 2008;
4) The borrower(s) do not need to be in default, but they must be able to prove that they will not be able to sustain timely payments;
5) The borrower(s) must attest that they are not in deliberately defaulting in order to obtain lower payments.
In addition:
a) Borrowers may not take out another home equity loan for at least five years unless the purpose is to pay for needed home maintenance or repairs;
b)The total debt on the home can not be more than 95% of the home's appraised value;
The borrower must get approval from the FHA.
The cost to the borrower will be 1.5% of the principal annually paid to the FHA as an insurance premium guaranteeing the loan. Borrowers will share any future profits with FHA in the form of a 3% "exit" fee. If they sell or refinance within a year, they will pay 100% of the profits to the FHA. After one year, borrowers will share 90% of the profits. The percentage keeps dropping in 10% increments to 50% after the fifth year and then will stay at 50%.
If you think that this program can be helpful to you, contact your real estate agent who can put you in touch fit a mortgage professional. It is possible that you could lower your present indebtedness by as much as 40%. If you truly want to stay in your home, this program could seriously improve your present mortgage payment.
The current credit crisis has been the main topic of the U.S. media. Even the presidential race seems no longer to be front page news. While the current emergency measures are designed to stabilize the banking and brokerage industries, it hopefully will be successful which down the road will be a benefit to the main street home owners. Unfortunately, or fortunately, the availability of credit is a necessity for both businesses and individuals.
Somewhere in all the frenzy to save the credit markets, the earlier "Housing and Recovery Act of 2008" lost its front page status. However, this loan guarantee program became law on October 1, 2008. In the Inland Empire, until January 1, 2009, if your property is now appraised at approximately $515,000, you might be eligible for assistance from the Housing Rescue Program.
In order to qualify for assistance, borrowers must meet the following criteria:
1) The borrower must live in the home on which the mortgage was taken out;
2) The loan must have been issued between January 2005 and June 2007;
3) The borrower must be spending 31% of their gross monthly income on their mortgage as of March 1, 2008;
4) The borrower(s) do not need to be in default, but they must be able to prove that they will not be able to sustain timely payments;
5) The borrower(s) must attest that they are not in deliberately defaulting in order to obtain lower payments.
In addition:
a) Borrowers may not take out another home equity loan for at least five years unless the purpose is to pay for needed home maintenance or repairs;
b)The total debt on the home can not be more than 95% of the home's appraised value;
The borrower must get approval from the FHA.
The cost to the borrower will be 1.5% of the principal annually paid to the FHA as an insurance premium guaranteeing the loan. Borrowers will share any future profits with FHA in the form of a 3% "exit" fee. If they sell or refinance within a year, they will pay 100% of the profits to the FHA. After one year, borrowers will share 90% of the profits. The percentage keeps dropping in 10% increments to 50% after the fifth year and then will stay at 50%.
If you think that this program can be helpful to you, contact your real estate agent who can put you in touch fit a mortgage professional. It is possible that you could lower your present indebtedness by as much as 40%. If you truly want to stay in your home, this program could seriously improve your present mortgage payment.
posted by shirley harry at 8:32 AM
0 Comments:
Post a Comment
<< Home