There are many homeowners that now have an upside down mortgage.  If you are upside down on your home you can find relief with the hope for homeowners program. The hope for home owners program will reduce your mortgage balance. Monthly mortgage payments will be lower.

You can get a new loan based on the current value of your home.  If your loan is upside down the additional balance can be forgiven.  The new loan will be for 90% of the new appraised value.

This will result in a major reduction in your monthly payments.  Payments may be reduced by as much as 50%. Homeowners will be able to stay in their home.

Your new mortgage will be an FHA mortgage.  This means it is insured by the Federal Housing Administration.

I’m sure you can imagine how many home owners will be helped with this program.  If you are upside down on your mortgage, take the time to research this program.

Income documentation will be needed.  Most of the standard mortgage guidelines will apply.  The reduction of your balance will be advantageous when calculating your new payment.

This program which is now know as hope to homeowners was passed on the 30th of July, 2008.  This is only available on owner occupied homes.  It is set to expire on September 30th, 2011.

You will have to qualify for this program.  Maximum loan amounts do apply.

This program can help you if you have mortgage troulbes. Your new loan can have amazing benefits over your current loan.

There is an equity sharing element to the hope to homeowners program.  The equity that you build in your home will be shared with the Federal Housing Adminstration (FHA).  When your home is sold your current lender will participate in some of the profits on the sale of your home. The scale changes and is based on how much time has passed. Moving forward, the FHA will share in your home’s equity as well.

Find out more on  hope 4 home owners.

The Hope 4 Homeowners (H4H) program is aimed at helping homeowners that have found themselves owing more on their mortgage than their home is worth. This program can actually reduce the amount that a homeowner owes on their mortgage which leads to a lower monthly mortgage payment.

The Details?

The H4H loan is based on the current value of the home for the purposes of refinancing. A Hope 4 Homeowners’ loan will be 90% of the current value of the home. Having the balance forgiven may have some negative aspects. The Federal Housing Administration (FHA) and your current lender will share in any profits of the house when the homeowner sells their home. This offsets the balance that has been forgiven. {The reduced loan amount results in a lower montly payment}.

Brief Summary:

Let’s say that your current mortgage balance is $400,000 and your home is now worth $250,000. There are millions of homeowners that find themselves in this scenario. You are currently making a mortgage payment on a loan that is much greater than the value of your home. The Hope to Homeowners program will finance a new loan based on 90% of the home value today. This example results in a loan amount of $225,000. That is a reduction of $175,000 in the principal balance of your mortgage. The new mortgage payment will be based on this new loan amount of $175,000.

Will the Payment be Reduced?

The principal reduction of your mortgage is not the only benefit to this program. The Hope to Homeowners loan payment will also be reduced. Let’s say the current mortgage is $400,000 at 6% on a 30 year fixed (the benefits are even greater if you are in an adjustable rate mortgage). The current payment is $2,398. Let’s just assume that the Hope 4 Homeowners loan has the same interest rate as the current mortgage (all H4H mortgages are 30 year fixed). The H4H payment is $1,348. That is $1,050 in monthly savings. The benefits are substantial.

There are some qualifying factors that homeowners need to understand. Now that you understand the benefits of the Hope 4 Homeowners program it is time to do a bit more research and find out if you can qualify for this program. Keep in mind that there are some negative aspects of this loan. You may give up some of the equity that your home builds when you sell your home. This program will however help many Americans keep their homes. The H4H program can and will provide some much needed hope to homeowners that are upside down on their mortgage.

This company can help you find out more. Hope for Homeowners