FHA steps in to assist people with ARM's

I have another important piece of news to share with you.  The Federal Housing Authority (FHA) has just released guidelines on a "bail out" program for people who have ARM's that have adjusted and have fallen behind on their payments. 

I have just received word that Home America Mortgage has been approved to handle these, so we will start doing these mortgage types immediately. 

If you know of anyone who is in trouble with an ARM (Interest only or Principal and Interest) since it has reset or who may be in trouble when it resets please have them call me.  Below are a few of the guidelines for this new loan program:

• The interest rate and terms will be standard FHA rates and terms
• FHA loan limits also apply which for the big metro Atlanta counties is $252,890 - (maximum loan to value is 97%)
• The mortgage being refinanced cannot be an existing FHA loan
• The ARM must have already reset (they can refinance as soon as it does) and the reset must have caused the delinquency issues
• The borrower must show that, prior to the reset, all mortgage payments for the previous 6 months were not more than 30 days late
• If there is sufficient equity in the home FHA may allow some mortgage late's in the last 6 months (case by case)
• As the lender, we still have to show FHA that the borrower will be able to make the new mortgage payment 

These are just a few of the guidelines but the bottom line is that FHA is throwing a line to people whose credit has already been affected and will do loans for them if they had a reasonable credit history prior to the ARM resetting. Many of these folks will have no other options, so this could be a huge help.

To see the article from HUD, click here.

To see the state by state breakdown of foreclosure rates click here. 

I am happy to answer any questions you or your clients may have related to this new program!

Thanks!

Mark Moore
404.373.3411 office
404.433.MARK (6275) cell
678.935.4383 fax
mmoore@homeamericamortgage.com