In addition to FHAsecure and other efforts by the FHA the new program HOPE for Homeowners will provide another valuable option to American homeowners who are in need of stopping the foreclosure process.

The underwriting guidelines to the HOPE for Homeowners program state that the lenders who participate in the program will be required to write down mortgage loans to 96.5% of the current appraised value of the home. This means even if you are upside down with the loan this program would automatically give you equity in the property.

The HUD also wants lenders to work with homeowners to prevent foreclosures and encourages lenders to use this new program as a loss mitigation tool before foreclosure documents are mailed out. In house loan modifications are also promoted if they help homeowners stay in their homes.

The HOPE for Homeowners program will only offer safe 30 or 40 year fixed loans to reduce the risk of possible defaults. It is noted that applicants still must be able to afford the new 30 year or 40 year fixed payment after the loan amount is set up to 96.5% of the current value of the home.

Homeowners must meet the following guidelines:

• You must have obtained the mortgage on or before 1-1-08
• You have a hard time paying your current mortgage
• You must have had the home in question for at least 6 months
• You can not own a second home
• You must have a debt to income ratio of 31% or greater
• You must have not provided false information on your current mortgage
• You must be able to prove all your income and meet FHA guidelines for employment
• Current lenders must agree to release your current mortgage lien

• Lenders are now allowed to refinance mortgages into the H4H program and provide for terms out to 40 years.

• The LTV or Loan to Value requirement is now 96.5% from 90% the actual LTV requirement will be determined upon application and initial qualification.

• Relief for homeowners with second mortgages will be provided by allowing second mortgage holders to release their payment in exchange for an immediate payment from FHA. This acts as a settlement on the second lien and is hoped this would be enough for the second mortgage holder to release the loan.

• The loan limit is $550,440.00

Download the FAQ provided by the FHA here

Do Not Wait! Act Now!

While this new program is expected to help many Americans keep their homes it should not be the only solution you try. You need to try to save your home while applying for this program.

Remember we are not FHA or any government agency. We are here to provided you with the most up to date information we can. We also do not write mortgage loans or provide any application, we are just an informative website.