Find Out How to Refinance Your Home Loan With an Fha Hope Loan

The government is trying to help decrease the housing crisis by offering the “Hope for Homeowners” program. It is a FHA refinancing choice for homeowners who have adjustable rate mortgage loans. Their goal is to decrease the rate of foreclosures in the country by putting them into fixed-rate mortgages. It is scheduled to run until September of 2011.

How to Qualify for FHA Hope Refinancing Program

Initially, you will have to get in touch with a lender who is approved to FHA loan and see if you are qualified for the FHA refinance Hope program. As usual, there are specific conditions for the program.

Some standard conditions for FHA refinancing include:

• Your current mortgage loan began on or before 1/1/08.




• Your monthly mortgage payments are more than 31% of your gross monthly income (as of 3/1/08).




• You did not intentionally become late on your payments.




• You have never been convicted of fraud.




• You do not own other residential real estate.




• You did not input false data on your mortgage application to get the original loan.

These are the minimum conditions to qualify for the FHA Refinance Hope program. Moreover, there may be additional conditions based on your file

Common Questions and Answers

The main objective of the FHA Hope program is to assist at-risk homeowners (who are close to foreclosure) to refinance out of an ARM and into an affordable fixed-rate mortgage loan. This benefit should decrease the borrower's monthly payments who enroll into this FHA loan program.

Are there any closing costs?

Just like as with any home loan, there will be closing costs for this refinance from the FHA. Borrowers are able to include these costs into the new loan, or they can pay them separately from their own funds. Ask for an estimate of closing costs from your mortgage company in the beginning stage.

How do I apply?

Discuss with your lender or mortgage broker regarding the documents required. It may vary from one lender to another. Although, it is quite customary to provide evidence of income (such as pay stubs, bank statements and W-2s), along with your current mortgage forms.

Upon receiving the required information for the FHA Hope refinance program (Hope for Homeowners)  borrowers who are approved will be offered a refinancing choice for a fixed-rate mortgage amortized over 30 years.

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Mario Olivera is an avid investor in real estate and contributor to FHA Jumbo Mortgages and
a Local FHA Mortgage Lender in your area.