Help from Washington for the Mortgage Industry

It was announced Friday, August 31st, that HUD will offer help to an estimated 250,000 families to avoid foreclosure on their homes by allowing them to refinance at a lower rate. This aid is available immediately.

And, in addition, HUD will launch it's new FHASecure plan in January, 2008, which will allow families that had strong credit histories before their interest rates reset to qualify for refinancing. These new programs will charge a risk-based premium based on the borrower's credit profile. Those with riskier credit will pay a higher insurance premium.

FHA transactions are expected to surpass 100,000 loans by the end of this fiscal year. And those figures do not include refinancing for delinquent borrowers.

To qualify, homeowners must meet the follow criteria:

1. On time mortgage payments before interest rate reset.
   
2. Interest rate reset between June 2005 and December 2009.
   
3. 3% cash or equity in home.
   
4. Sustained history of employment.
   
5. Sufficient income to make the new payment.
   

For more information, call 800-CALL-FHA or visit www.fha.gov and look through your old files to see if you have customers that may need your assistance with these new programs.
And, as always, remember that we are FHA certified and would love to do business with you!