Tower Loan Loan Modification Vs Fha Refinancing - Options For Homeowners Facing Foreclosure
With the emergence of the new Making Home Affordable plan enacted by Congress in March 2009, lots of people with a hard time making their monthly mortgage payments are wondering about their options for keeping their houses. One question they have is how they can benefit from the new loan modification program vs. FHA refinancing.
The first thing to understand is that under the Making Home Affordable plan, only mortgage loans backed by Fannie Mae or Freddie Mac can be modified or refinanced. The government is currently working to add similar loan modifications to FHA and VA loans, but hasn't passed any new legislation yet.
If the current financial crisis is making you unable to make your mortgage payments, you have a few options open to you. Two of those options are loan modification under Making Home Affordable and FHA refinancing. Which you take advantage of really depends on who insures your specific loan. If you're not sure, call your lender and ask.
If your tower loan no credit check payday loans direct lenders is insured by the FHA, look into their Hope for Homeowners refinancing program. Traditional refinancing requires people to have at least 20% equity in their homes before they refinance, but because house prices have fallen so dramatically recently, many homeowners have lost so much equity that they no longer qualify. This is through no fault of their own, and that's why the Hope for Homeowners act was created. By refinancing affordable fixed-rate mortgages made possible by equity sharing, buyers can avoid foreclosure.
Equity is the value that you have paid down on your home tower loan payday loans in 15 minutes direct lenders. By refinancing with the Hope for Homeowners program, you agree to split the equity in your home with the FHA in the event that you sell the home. The scale depends on the length of time since the refinance occurred: if you sell within the year, then 100% of the equity belongs to the FHA. If you sell more than 5 years later, you split the equity 50-50. Hope for Homeowners refinances are available until September 20, 2011.
If your loan is insured by either Fannie Mae or Freddie Mac, look into loan modification through the Making Home Affordable plan. Loan modification is different from traditional refinancing. Lenders have to follow a set series of steps to reduce your monthly payments to 31% of your monthly income, starting by reducing your interest rate. They receive incentives from the Making Home Affordable initiative for doing this, and if you can make and keep your commitments under a modified tower loan no credit check loan lender you will receive incentive payments from the government plus stay in your home!