Hope For Homeowners Plan (HUD)/FHA
The HOPE for Homeowners Act (H4H) Program is effective for endorsements on or after October 1, 2008, through September 30, 2011.
- Affordability versus value: lenders will take a loss on the difference between the existing obligations and the new loan, which is set at 96.5 percent of current appraised value. The lender may choose to provide homeowners with an affordable monthly mortgage payment through a loan modification rather than accepting the losses associated with declining property values.
- Borrower eligibility: Lenders that determine the H4H program is a feasible and effective option for mitigating losses will assess the homeowner’s eligibility for the program:
- The existing mortgage was originated on or before January 1, 2008;
- Existing mortgage payment(s) as of March 1, 2008 exceeds 31 percent of the borrowers gross monthly income for fixed-rate mortgages; For ARMs, the existing mortgage payment(s) exceeds 31 percent of the borrowers gross monthly income as of March 1, 2008 OR the date of the new loan application.
- The homeowner did not intentionally default, does not have an ownership interest in other residential real estate and has not been convicted of fraud in the last 10 years under Federal and state law; and
- The homeowner did not provide materially false information (e.g., lied about income) to obtain the mortgage that is being refinanced into the H4H mortgage.
Read more about this topic: Loan Modification In The United States
Famous quotes containing the words hope and/or plan:
“Pale hands, pink-tipped, like Lotus buds that float
On those cool waters where we used to dwell,
I would have rather felt you round my throat
Crushing out life than waving me farewell!”
—Laurence Hope (1865–1904)
“He fashions evil for himself who does evil to another, and an evil plan does mischief to the planner.”
—Hesiod (c. 8th century B.C.)