Filed under FHA FAQ, FHA news, Mortgage News, Published Articles · Tagged: FHA Loan Modification, FHA loan modification guidelines, FHA mortgage, FHA mortgage programs, FHA requirements, FHASecure, mortgage refinance loans
Check out the latest FHA mortgage guidelines and FHA requirements for their new loan modification efforts for conventional home loans. FHASecure was the first FHA home loan program created to provide mortgage relief for delinquent homeowner who were not able to qualify for a conforming mortgage refinance loan.
o FHA announced their new mortgage modification plans to aid distressed FHA borrowers.
o The FHA home loan is refinanced and 30% of the FHA loan is placed into an interest-free second mortgage that must be paid back when the property is sold or refinanced.
o Homeowners must qualify with ratios of 31/55. The 1st ratio says that up to 31% of the individual’s monthly income can be used for housing costs and that 55% can be used for housing costs plus other monthly debts.
o The borrowers must be able to document a hardship (ie. an income change, loss of employment etc.) and HUD must be considered as a long term hardship.
Read the original article online > FHA Loan Modification Program.