The housing bill and hope for homeowners has made much to do about the FHA short refinance. The FHA short refinance should help borrowers to renegotiate the mortgage payoff to a lower amount that can be refinanced through the FHA loan program. Let's take a look at who is eligible:
1. The individual must be the Homeowner who actually lives in the house, and not be an investor. In other words, no rental properties are eligible to receive a new mortgage.
2. Homeowners must certify that they have not intentionally defaulted.
3. Homeowners must have a mortgage debt of more than 31% of their monthly incomes as of March 1, 2008.
4. Homeowners incomes must be verified.
5. The troubled loan must have been no later than January 1, 2008.
Well as you can see from the above, many borrowers should qualify for the fha short refinance. It should be noted that the program is voluntary and in that regard there may not be as much hope for the hope for homeowners program when the fha short refinance is voluntary.
Stay tuned for more information on fha short refinances through the Hope For Homeowners program.