FHA Loan Modification

by admin on February 16, 2009

  1. The FHA has made it mandatory for owners of houses to abide by this program for about 30 years period. They have made it amply clear that they would not accept any other type of loan. You are eligible only for this particular program.
  2. The Federal Housing Administrative (FHA) normally loans the borrower upto 90% of the value of your assets.
  3. In case one has many trusts, deeds, and there is a depreciation in the net asset value of your house, then you should thank your stars if you are a member of FHA program. Your lender would still be ready to cover your losses.
  4. FHA aims at enabling the homeowners be put in their respective homes. They are fully aware that foreclosure is not going to benefit them and it is not an answer to the crisis. In case the property is sold out in the retail market, it automatically means there is a reduction in the value of the house and the lender as well as the borrower stands to lose out on this deal.
  5. FHA also believes in a lenient approach with regards to mortgage lending. They are more than lenient with respect to the payment terms of the loan.
  6. The guidelines and rules and regulations of the FHA has also laid down ordinances whereby the lenders, borrowers, underwriters would have better understanding of the latest rules and regulations.
  7. With the new rule coming into effect, the rates of the FHA would also rise by about 300 to 450 dollars.
  8. FHA’s aim is to transfer the rights to them thereby lessening the burden on the house owners. You need to be patient since most of the lenders do not have the necessary documents pertaining to your loan with them. You need to tackle this problem with ultimate care. You also need to be in touch with your respective officer who is processing or who is in charge of your loan submission procedure.
  9. People who have their property at densely populated places like Los Angeles, San Francisco and other posh areas are better off. The number of foreclosure cases is comparatively higher in such areas.
  10. The revised FHA guidelines are effective from 1st October 2008 would focus on a person’s capability to disburse the loan installment and whether he is capable to pay back the loan.
  11. Your lender would still be benefited by selling the loan to your FHA rather than sell it to the retail market where he has to pay for the electricity, gardener and water bills. They would still stand to benefit if they avoid foreclosure of the loan.
  12. Your lender would anyways stand to definitely benefit if they sell out your loan to FHA. If you choose to sell your asset within the stipulated period, your lender would also stand to benefit from the profits affected. This condition would attract many lenders who would participate in the FHA loan buy out.
  13. The extra cash incurred with regards to fees for attorney and other professional fees will be paid by your lender. You need to bear these costs. These are normally borne by your lender in this program.
  14. As per the FHA program, people who buy homes for the first time are normally advised to buy their houses between April 08 to July 09. This program specially helps people in getting their homes. This program enables the housing market to be in good shape.
  15. Your underwriter would decide on the loan depending upon 2 factors like your current worth in relation to financial assets, stockholding etc. They have nothing to do with your credit score, if you are able to pay your present loan amounts.
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