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.