FHA Mortgage Loans and No Hope for Home Owners
In a recent article written by Bryan Dornan, he reflects on the subprime mortgage problems starting in 2006 and brings us up to speed with FHA and the foreclosure crisis. Dornan points out how the media is giving the mortgage lending banks like Countrywide, Chase and Wamu a pass with the FHA loan guidelines that have been tightened to the point of strangulation.
The FHA mortgages were reborn in 2007 with new cash out requirements that enabled borrowers to qualify for cash out refinancing up to 95%. In an effort to curb foreclosures HUD introduced the FHA Secure refinance that enabled borrowers who were paralyzed with a high rate adjustable mortgage to lock into a fixed rate loan that they could afford. The homeowners that had enough equity began utilizing FHA home loans for debt consolidation and home improvement funding. In 2008, Congress finally passed an economic bill that mandated FHA mortgage loan amounts to increase nationally.
FHA recently introduced the H4H that is considered a “short refinance” because it is a mortgage loan modification endorsed by FHA.
Read the complete article Loan modifications, FHA Refinancing and No Hope for Homeowners.
Tags: FHA mortgage
April 26th, 2009 at 8:55 am
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