| The Federal Housing Administration (FHA) has finally | | | | just like any other loan modification process. There is |
| come into compliance with President Obama's Home | | | | an application and multiple documents that must be |
| Stimulus Program! This means that millions of | | | | submitted. You will need to contact your specific lender |
| homeowners that previously could not get a loan | | | | for their unique requirements. But at least now you |
| modification, will now be able to! Effective August | | | | have a chance even if you are a FHA borrower! |
| 2009 FHA borrowers will be able to reduce their | | | | The application process for FHA loan modifications is |
| monthly mortgage payments! This is great news for | | | | just as complex and detailed as non FHA |
| every FHA borrower out there! | | | | modifications. It can be confusing and overwhelming to |
| Previously only Fannie Mae and Freddie Mac | | | | face this application process while constantly worrying |
| borrowers were eligible for loan modifications. Now | | | | about saving your home. You are not alone! There is |
| under the new guidelines there are now FHA loan | | | | help available to you! There are experts that can |
| modifications! Let's look at how the FHA has changed | | | | facilitate the process for you. They will contact your |
| to help American homeowners. | | | | lender, insure that you have all of the documents |
| FHA borrowers will now be able to lower their monthly | | | | required and help verify that everything is accurate |
| payments to something they can actually afford! The | | | | and complete. They will also work to get you the best |
| principle balance of your loan can be reduced by as | | | | possible FHA loan modification available! Just make |
| much as 30%, thus allowing a recalculation of the | | | | sure you do your homework and choose an expert |
| monthly payment. However, that 30% reduction does | | | | only after checking them out! There are many scams |
| not vanish, it is simply deferred. You are then required | | | | out there right now, you don't want to fall victim to |
| to repay that deferment once your initial mortgage is | | | | them and end up losing your home anyway! Call the |
| paid off. Basically this extends the usual FHA terms to | | | | Better Business Bureau, call the Chamber of |
| more than 30 years. | | | | Commerce and verify that whomever you choose |
| Of course you will need to apply and get approved | | | | has a business license and a good rating! |