Q: What is the HOPE for Homeowners Program?
A: This is a new program for borrowers at risk of default and foreclosure. The program provides new, 30-year, fixed rate mortgages that are insured by the Federal Housing Administration (FHA).
It may help you refinance your mortgage into a more affordable payment.
H4H is voluntary. Both lender(s) and borrower(s) must agree to participate.
Q: When does H4H Begin?
A: The program begins October 1, 2008 and ends September 30, 2011.
Q: Who is eligible?
A: You should contact your lender to determine eligibility, but you may be eligible if, among other factors:
- The home is your primary residence, and you have no ownership interest in any other residential property, such as second homes.
- Your existing mortgage was originated on or before January 1, 2008 and you have made at least six payments.
- You are not able to pay your existing mortgage without help.
- As of March 2008, your total monthly mortgage payments due were more than 31 percent of your gross monthly income.
- You certify that you have not been convicted of fraud in the past 10 years, intentionally defaulted on debts; and did not knowingly or willingly provide material false information to obtain existing mortgage(s).
Q: How much can I borrow?
A: Your new H4H mortgage will be no more than 90% of the new appraised value of your home with the lender essentially writing down your current mortgage to that amount.
Q: What costs do I have to pay?
A:
- The new mortgage, if approved, will replace all of the current mortgages on your home. You will not owe any payments, fees or debts on mortgages you now hold.
- You must agree to share both the equity created at the beginning of this new mortgage and a portion of any future appreciation in the value of your home.
- In addition to an upfront mortgage insurance payment of 3%, you will pay a 1.5% annual mortgage insurance premium on your outstanding mortgage balance. This premium will be included in your monthly payments.
- You will need to pay closing costs on the loan. You will receive a Good Faith Estimate of these costs.
Q: Will my new interest rate be lower than my current rate?
A: The interest rate for the new mortgage will be based on current market interest rates and will be provided by the lender.
Q: I currently have a second mortgage. If needed, can I take out a second mortgage under this program?
A: You cannot take out a second mortgage for the first five years of the loan, except under certain circumstances for emergency repairs.
Q: How can the H4H program help me?
A: If you are having trouble making your mortgage payments, this program may allow you to refinance your loan into a new 30-year fixed rate loan with lower payments.
Q: Do I have to pay anything to apply?
A: There will be closing costs associated with HOPE for Homeowners loans; however, they may not be required to be paid out of pocket by the borrower. Please consult your lender or a HUD-approved Housing Counselor for more details.
Q. How long will the process take?
A: Processing time will vary, but usually takes approximately 60 days. Please consult your lender when you apply.
Q: What information do I need to apply?
A: Your lender is in the best position to answer this question based on your specific situation, but at a minimum you will need evidence of your income and assets, as well as your current mortgage information.
Q: How long is the H4H program available?
A: The program began on October 1, 2008 and will end on September 30, 2011.
Q: What interest rate will I receive?
A: The interest rate for the new H4H loan will be provided by the lender and is based on current market rates.
Q: I don't want another adjustable rate mortgage. Will this interest rate be fixed or adjustable?
A: All HOPE for Homeowners loans are 30-year fixed rate mortgages insured by the Federal Housing Administration (FHA).
Q: I contacted my lender and they are not interested in participating in this program. Can I apply with HUD?
A: HUD does not accept loan applications or lend money directly; however, you may apply with any FHA-approved lender who is participating in the program. You may also consult a HUD-approved housing counselor.
Q: My lender has started foreclosure proceedings. Can I still apply for H4H?
A: Yes, however, time is of the essence.
Q: Is there an income restriction?
A: No, but you will need to demonstrate that you have sufficient, steady income to make the new H4H mortgage payments.
Q: I recently filed for bankruptcy. Am I still able to apply for H4H?
A: Yes, borrowers in bankruptcy may participate; however, you will want to consult with the person handling your bankruptcy.
Q: My lender has already foreclosed on my home. Can I still apply for H4H?
A: It may be possible depending on which stage of the foreclosure process you are in. You should talk to your lender immediately for more detailed information.
Q: I have a first and second mortgage on my home. Can I still apply for H4H?
A: Yes, however, all your existing lenders must agree to release the liens against your home.
Q: I am current on my mortgage. Can I apply for H4H?
A: Yes.
DISCALAIMER; All of the above information was taken from the Federal Housing Administration. US Department ofHousing and Urban Development on April 10, 2009. SaveUtahHomes.com is not a non profit organization. We are a for profit organization that has a mission to Save every Utah Homeowner from foreclosure. We are in no way representing that we are approved counselors with the HOPE program or any other non profit organization. We simply want to be the complete source of information to help homeowners behind on house payments so they are aware of all of their options. We do believe that the HOPE program was a waste and the private sector is doing a much better job in helping homeowners. See our Blog under HOPE Program for further details.
