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Bush Changes H4H Guidelines |
FHA has modified the loan guidelines for the HOPE for Homeowners program to encourage and increase participation in the program. Below are the modification that have been made.
- The loan to value ratio of the home is now 96.5% which means less of a write down needs to be approved if any is required at all. This is depended on the current appraised value.
- Additional support for homeowners with more then one mortgage. The new guidelines allow for cash payments to second mortgage holders by the FHA to encourage then to release the second lien on the home.
- FHA will allow for mortgage terms to be extended to 40 years to provide additional relief to anyone needing it.
These new changes should provide very affordable payments to homeowners and also provide additional incentives to allow homeowners into the program instead of foreclosing on them. Lender participation is still voluntary and you still need approval from your existing note holder before you can search for FHA lenders that would be able to write this loan for you.
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