Financial Recovery Group LLC
Providing Financial Recovery Solutions
HOPE FOR HOMEOWNERS
Borrowers who are current or delinquent on their mortgage that is less than $550,440.00 are eligible if their loan originated on or before January 1, 2008 and have not intentionally defaulted on their loan without a hardship. You must not be able to pay current loan but have made a minimum of (6) six full payments during the life of the loan. You must reside in the property and not have any ownership interest in any secondary homes including rental properties and vacation homes. You must not have been convicted of fraud in the last 10 years and you can’t take out a 2nd mortgage for the first five years. You must agree to share equity created at the start of the loan and any future appreciation with FHA on a sliding scale (Ex: 100% equity for FHA in first year to a minimum of 50% after 5 years). You must certify under penalty of law that you did not knowingly or willingly provide any false material information to obtain the existing mortgage you have. Your current debt to income ratio on all existing mortgages must be greater then 31% of borrower’s gross monthly income. Your new loan will be charged an upfront mortgage insurance premium of 3% and an annual mortgage insurance premium fee of 1.5%. Loans may be extended from 30-40 yrs. Must have at least 3.5% equity if your mortgage payments represent no more than 31% of income and your total debt is below 43% of your income. You may qualify if your mortgage payments represent 38% of your gross income and your total household debt is no more than 50% if you have at least 10% equity in your home. Your lender must have a signed contract with Government to participate. If you have less than 10% equity and very high debt you may not qualify. While it has not been defined, consumers need to be aware their credit scores could be affected during the duration you are in the program especially the first 5 years (See Home Affordable Modifications).
DISCLAIMER: This information was summarized from websites and press releases made by the Federal Government and other sources. This summarization is intended to help you be aware of some of the program offerings. Government sponsored programs are subject to change at any time. The Hope program was originally announced on October 1, 2008 and was updated and changed in March of 2009 including to establish additional program standards as the program is implemented. So when reviewing information on Hope be sure you are reviewing the most current version. FRG encourages all distressed homeowners to review the Government’s website at www.hud.gov. You may also call FHA at 800.CALL.FHA. (Version Date 4/13/09).
