It’s the same story everywhere a real estate agent turns: we can’t afford our payments with ARMs adjusting and we can’t sell because we owe more than our home is worth!
Perhaps a little light? New refinance options will soon be available to underwater homeowners who are current on their mortgage. Beginning on September 7, 2010 FHA will offer certain ‘underwater’ non-FHA borrowers who are current on their existing mortgage and whose lenders agree to write off at least ten percent of the unpaid principal balance of the first mortgage the opportunity to qualify for a new FHA-insured mortgage.
Criteria for eligibility:
- Credit score higher than 500 and must meet all current underwriting qualifications
- Home must be the borrowers primary residence
- Borrower must be up to date on payments
- Borrower must owe more than what the home is worth
- Borrower’s existing first lien holder must agree to write off at least 10% of their unpaid principal balance, bringing that borrower’s combined loan-to-value ratio to no greater than 115%.
- The existing loan to be refinanced must not be an FHA-insured loan, and the refinanced FHA-insured first mortgage must have a loan-to-value ratio of no more than 97.75%
Contact the Walker Derby Team for more information!
Tags: Avoiding foreclosure, avoiding short sale, owe more than home is worth, refinance options, underwater homes
