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Loan
Modification Pre-Qualification -
Loan Mod FAQ
More Info>>>
The primary purpose of loan modifications is to assist distressed
borrowers who are unable to meet their mortgage obligations.
Therefore, a loan modification, as opposed to a refinancing, enables
the service company to change the terms of a loan to better enable the
borrower to stay current or cure a loan without retiring the existing
loan. Loans can be modified by extending the amortization terms,
adding balloon payments, decreasing the mortgage rates, forgiving
principal or interest payments, and extending the fixed-rate period of
a hybrid ARM loan, among other things.
This means the lender will make changes to the original loan. Those
can be changes to your interest rate, payment schedule, loan balance,
late charges, length of loan, pre-payment penalties, the handling of
past-due payments, and the like. You do not have to be behind in
payments to negotiate a Loan Modification
Get more information by clicking the More Info. link below. You will
be connected to a loss mitigation counselor for loan modification
consideration in order to help you stay in your home at a payment
you can afford!
Loan Modification
Pre-Qualification -
Loan Mod FAQ
More Info>>>
Reverse Mortgages
- More Info>>>
Borrower Eligibility - All
borrowers must be age 62 or older. (NO EXCEPTIONS) Occupy the property
as your primary residence. Participate in HUD approved counseling
session. Property must meet HUD standards.
Loan Amount Based On - Age of youngest borrower. Appraised
value. No Income or Credit required.
A Reverse Mortgage is a "Safe and
Highly-Regulated Program" to give older American Homeowners greater
financial security. The program allows homeowners age 62 and older to
use their home value while maintaining ownership, without creating a
monthly debt.
Homeowners can receive payments in a lump sum, on a monthly basis (for
a fixed term or for as long as they live in the home), or on an
occasional basis as a line of credit. Homeowners whose circumstances
change can restructure their payment options.
Unlike ordinary home equity loans, a HUD reverse mortgage does not
require repayment as long as the borrower lives in the home. Lenders
recover their principal, plus interest, when the home is sold or
refinanced by the heirs. The remaining value of the home goes to the
homeowner or to his or her survivors. If the sales proceeds are
insufficient to pay the amount owed, HUD will pay the lender the
amount of the shortfall. The Federal Housing Administration, which is
part of HUD, collects an insurance premium from all borrowers to
provide this coverage.
Reverse Mortgages
- More Info>>>
FHA Loans (FHA
Secure - FHA Bailout)
Not long ago, FHA lending was just
another government-sponsored program unworthy of political attention
or media limelight. Now, with no less than three new reform
initiatives, FHA is generating excitement, confusion, speculation, and
even venom for political pundits and the media.
The Federal Housing Administration has helped millions of Americans
secure their dream of homeownership since 1934. Now we want to keep
those dreams alive.
FHA provides mortgage insurance on loans made by FHA approved lenders
throughout the United States and its territories. FHA insures
mortgages on single family, multifamily, manufactured homes and
healthcare facilities. It is the largest government backed mortgage
insurer.
WHAT IS FHA Secure
FHA Secure is a refinancing option that gives credit-worthy
homeowners, who were making timely mortgage payments before their
loans reset but are now in default, a second chance with a FHA insured
loan product.
Fixing Broken ARMs
FHA Secure is a new federally-insured (temporary) lending program
announced by President Bush on August 31, 2007, and released to
FHA-approved lenders on September 4. Qualified homeowners seeking
payment relief from their adjustable rate mortgage (ARM) may be able
to use FHA Secure to restructure their loan into a more stable,
fixed-rate program, even if they are already delinquent on payments.
"Risk Based" fee schedules, which are to be released shortly, will
help price these loans appropriately.
Do You Qualify?
To qualify for an FHA Secure loan, borrowers must meet the following
five criteria:
1) A history of on-time mortgage payments before the borrower's teaser
rate expired and loan resets.
2) At least 3% equity in the home or cash to compensate.
3) A sustained history of employment.
4) Sufficient income to make the mortgage payment.
5) Loan application must be signed no later than December 31, 2008.
By refinancing into a FHA insured mortgage, you can expect to pay
lower monthly mortgage payments. FHA Secure can improve the quality of
life for many communities by helping to reduce the number of mortgage
defaults and bringing greater stability to local housing markets.
Even if you do not meet these
criteria, you should still contact a qualified mortgage professional
because he or she can often provide you with other resources to help
overcome your current challenges and reach your financial goals.
What Are The
Basic Loan Types?
The past several
years have seen an explosion in loan products designed to meet almost
every borrowers individual criteria. These many mortgage products fall
under a few basic loan types.
15-Year and
30-Year Fixed Rate Payment
and rate stay the same from start to finish
5 and 7 Year
Balloons
Lower start rate. Some of the balloon programs may be converted to an
adjustable rate or a fixed rate after the 5 or 7 years, with very low
fee and attractive rate.
Interest Only Loan In
the beginning of the interest only mortgage loan, more of the interest
is being paid, but as time goes by, more and more principal is paid
off. As the name, "Interest Only",
implies, there is a period of time (at the beginning 5 - 10 years
usually) of the mortgage loan payments in which only the interest on
the loan amount is being paid off.
In addition, Interest only mortgage
loans are the perfect alternative to conventional mortgages for those
who will live in their homes for less than 10 years. It really depends
upon your needs and goals, especially in the next five years.
Adjustable Rate
Mortgage (ARM)
Lowest start rate Adjusts either every 6 months or every 12 months
depending on program and grade and is based on the economy 6% ceiling
for prime and 7% ceiling for sub-prime.
5/1 and 7/1
Fixed Rate
Rate is fixed for the first 5 or 7 years, then shifts to an adjustable
rate mortgage (ARM).
2/28 and 3/27
ARM
An ARM program that is fixed for the first 2 or 3 years, then shifts
into a 6 month adjustable rate mortgage. It is a sub-prime program
giving you a rate lower than the sub-prime 30-year fixed, and if you
have had credit problems, it allows a window of time for credit
rebuilding and seasoning. You will then want to refinance this loan.
What Should I Look For?
Are You Moving
in the First Few Years?
You may want to consider Interest Only or a balloon mortgage. Some balloon loans allow
you to convert to a longer term if you find the 5 or 7 years was not
enough time. Conversions are easy and reasonable. When you consider
this loan, ask if the program is convertible.
Do You Need the
Lowest Possible Rate to Qualify?
To qualify for the house you want, an
adjustable rate, Interest Only or a 7-year balloon may be the answer.
Do You Want a
Fixed Predictable Loan?
If you want a fixed predictable loan
for a long time, the 15-year or 30-year fixed is probably the best,
especially when you have good credit.
Which Program Is Best For Me? |
