FHA, or the Federal Housing Administration, is a backbone to our lending industry in the United States. What FHA does is provide lenders with reassurance that the loans they provide as FHA backed loans are safer than those without this backing. Borrowers of FHA programs come from a wide selection of people; including those with less than stellar credit, those looking for the lowest interest rate possible, and people looking for backing from the rocky market. The good news is that FHA loans can be refinanced.

Of Particular Importance

As a homeowner currently, you may be looking for help in getting out of a bad mortgage. It could be that you have had a rate adjustment, or you could be facing other circumstances in which you simply can’t afford the loan you currently have on your home. It is happening to millions in the country right now. FHA is there to help.

FHA will provide refinancing into better loans to qualified buyers. You don’t have to have the highest credit score to get this help, either. FHA is allowing borrowers who do not have a strong credit history but are attempting to make their mortgage payments, help in getting into new loans. You may be approaching your limit and risking default, or you may already be in default. If this is the situation, look into FHA loan refinancing options for you. Many people will qualify for these loans and that means getting to stay in your home long term.

Of particular interest to those struggling with their loans is the FHA’s program: FHA Secure. If you are planning to sell your current home because you are on the verge of facing foreclosure, this is a potential option for you to stay in your home, too.

Who Qualifies For Help?

There are many people that will qualify for FHA Secure, but it is best for those who:

• Have been “good” borrowers in the past
• Have had their mortgage adjust and because of that adjustment are now facing problems making monthly payments
• Are on the verge or actually in foreclosure
• Had good credit but their current situation has ruined their ability to refinance their loan elsewhere through other loans
• Have a maximum home value or mortgage value of $417,000
• Need immediate help, all proceedings from FHA Secure need to be initiated and closed before the end of the year (unless renewed)

Do You Need Help?

Those who are struggling with their current mortgage will want to seek out help through FHA Secure. Even if you do not meet the qualifications for this program, FHA offers various opportunities for help. FHA loan refinancing is an option even if you currently do not have a FHA backed loan. Federally Insured Loans are designed to provide you with the ability to get a lower interest rate. They also help people who otherwise may not qualify for their loan.

If you are considering buying a home, you will not need FHA refinancing, but you may still want to qualify for an FHA loan for your new purchase. Talk with a specialist about the options available to you. These loans are available to a variety of people in a number of different credit scenarios.

As with any loan, you will need to show proof that you can afford the loan. If you are unable to make payments due to lack of employment, you may not qualify for an FHA loan, or any loan. Many people will qualify for this program, even those who do not have great credit.

Find the help you need for FHA loans through FHA Secure or other FHA loan programs currently available.

President Bush has been a long standing opposing figure against the housing bill that’s currently working its way through Congress. His reasoning here is sound: there are too many piggyback conditions being added to the bill, which is often the case with any legislation today. Yet, today, he announced that he would no longer fight this bill’s passage. In other words, he has put the VETO stamp down, at least for now.

The housing bill has merit: give homeowners who are struggling to keep up with their mortgages the ability to find new loans, with lower interest rates and payments, so they can get back on their feet. These new loans would come from federal programs. The housing bill would also provide support to the struggling mortgage giants Freddie Mac and Fannie Mae. These organizations are in dire need of additional funding and a cash infusion.

President Bush’s problem with the housing bill is noteworthy. There is an estimated $3.9 billion worth of provisions that would be aimed at providing lenders with additional financial support (that is not homeowners, but lenders) which Bush did not agree with.

In a telephone conference call with reporters today, the White House’s Press Secretary Dana Perino made this statement, as quoted by the Associated Press. “We believe this is not the time for a prolonged veto fight but we are confident the President would prevail in one.” Then, added, “The positive aspects of the bill are needed now to increase confidence and stability in the housing and financial markets. While we have concerns with other aspects of the bill, it is important that the new authorities are put in place promptly. And so President Bush will accept Secretary Paulson’s recommendations to sign the bill.”

So, what does this mean to those who are struggling with the current foreclosure market? If and when the bill passes through Congress and President Bush signs it into effect, it could mean additional protections and more loans available to keep homeowners out of the financial stresses they are currently in. The housing bill is designed to pump more opportunities into the system.

For those who are currently struggling with home loan, it also is important to get help as soon as possible. Do not wait for this bill to go into effect. Instead, seek out the help of an FHA loan specialist to offer you solutions. FHA loans are also readily available to those who need a new home loan.

Homeowners who are struggling to make payments in New Jersey may have an opportunity to get out of their bad mortgages easier than they think. As a proponent for helping those who are struggling with home loans, I must first say that if you are on the brink, contact an FHA loan adviser to find out what your options are. If you are in New Jersey, consider this opportunity.

The Federal Home Loan Bank of New York is a large bank providing funds to many of the 200 local banks in the region, including those in New Jersey. The bank has recently announced an initiative to offer some help to those who are struggling with their current mortgages.

The initiative is called HARP, or Housing Assistance and Recovery Program. The Federal Home Loan Bank is providing some $6 millions to Magyar Bank, which is based in New Brunswick. There, the First Baptist Church of Lincoln Gardens will provide counseling to those homeowners it has identified as being in danger of foreclosure. Once these people have been identified, the company (working under The First Baptist Community Development Corporation) negotiates on the homeowner’s behalf with their lender.

They use the proceeds from the $6 million loan to offer up to 70 percent of the loan’s value to the lender. Most lenders are happily taking 70 percent knowing that these individuals are on the verge of foreclosing. The lender will simply write off the remaining 30 percent as a loss and turn the loan over as a paid in full loan (which Magyar Bank will now hold as mortgage holder.)

Sound confusing? It is, but there is more. Magyar Bank holds the loan, but the homeowners are now actually renters in the home, and will make payments to First Baptist. The rent amount is based on what the homeowner can afford to pay. First Baptists works closely with these now tenants so they can improve their credit scores and their financial outlook. Then, once the tenants are ready, they will hopefully be able to refinance the loan into a new one with better terms.

The organization is working with other organizations in the New York area, as well as other areas of New Jersey to offer similar opportunities. There are several families making the transition into new mortgages currently.

Is this the right option for you? If a program like this is offered, and you have exhausted all possibilities with other loans, including FHA loans, then consider it. Work hard to get back ownership of your home though!

Do not make this mistake: Don’t hire someone to help you foreclose on your home or get a short sale for your home. You are wasting your money.

Next, don’t make this mistake: Don’t allow your home to go to short sale or to foreclosure without first contacting an FHA loan representative to find out if there is any help available to you. Most home loan borrowers will find some options to help them avoid losing their home to either of these financially devastating situations.

What happens when you go through a short sale or a foreclosure? What you may not realize is that both have the same end: you will lose your home and you will have long-term damage to your credit record. There is some evidence that both are just as hurtful to your credit, even though many will try to “sell” you on the idea that home foreclosures are worse on your credit than short sales.

What you do not need is to buy information or advice from a third party, especially when you are already having a difficult time with finding money to pay your lender.

Remember This!

If you do go through a foreclosure or you do have a short sale, one thing is for sure: you will be unable to get a new home loan for at least three years that is insured by FHA. Though there are some exceptions, they are few and only in dire situations. The fact is, if you do go this route, you won’t be able to get FHA insured loans later and that will hurt. More so, any time in the future that you apply for a mortgage, even well after those three years, you will need to state that you lost a home to foreclosure or to a short sale.

According to some experts, the only difference in the two in the long term is that in a short sale, you were involved in the process, or “at the table” for what happened. Whereas in a foreclosure, most home owners have little to do with the legal proceedings.

But, I’m Going To Lose My Home!

Those of you who are in rough water right now, hang tight. Contact an FHA loan advisor to find out if there are any current programs in place to help you through this difficult time. Most home owners are able to get the financial help they need. Many will find FHA loan options to keep them in their homes and to avoid all of these costly situations. You do not need to pay someone to short sell your home for you!

It used to be that once you graduated college, you were sent out into the world to make something of yourself…including getting into your first home. A home loan is not what is on the minds of a new group of people at this point, though. In fact, many people are looking to go back home to their parents house.

In a traditional sense, leaving college means starting a new job, getting into your first home loan and maybe even getting serious about someone. Yet, many college graduates are leaving this on the side and simply going back to what life was like the first 18 years of their life. Is this is a good option for many?

When You Have No Other Choice

Many people are pursuing this avenue because they feel they do not have any other choice. They may not qualify to buy their first home, for example. If this is the way you feel, definitely think again. You may be putting yourself on the road to mistakes and here is why:

• FHA loans make qualifying for a home loan easier to do, which has allowed many college graduates with little credit experience to get into a home even as a first time employee.
• FHA loans also are helping to make loans more affordable. For those graduates who are struggling to grapple with high interest rates, they won’t have to because of the more affordable home loans available through FHA security.
• You could be costing yourself more money if you wait; in the long term (even just a few years down the road) it is likely that the interest rates on home loans will rise. These historically low interest rates currently make buying a home an opportunity.

Going Home To Save

In addition to going home because college students don’t believe they can afford a home loan, many are also going home to save up for big down payments on that first home. This is a good thing, of course, but only when you can actually afford to do so. Remember, interest rates right now are still very low, which means it is still a very valuable time to invest in a home. Waiting until you have a sizable down payment may mean it is too expensive to buy a home later.

Traditionally FHA loans do not require that you have a large down payment either. You will be able to invest in a home with less of a down payment than most standard loans offer. Conventional loans are becoming a bit more difficult to obtain as many lenders are worried about losing money (so many of them have lost substantially due to the number of foreclosures they’ve had to pay for.) Therefore, when you do go out to get a home loan, be sure that you are securing a home loan that’s FHA backed.

When It Is Time

Once it is time to start looking for that great investment in a home, here are some tips to help you do it correctly:

• FHA loans offer added security to a lender; having an FHA loan will get you into a home loan with a lower rate and it may help some with less than perfect credit (but with other qualifications such as income) to get the home they want.
• Test drive your mortgage; start paying a mortgage payment each month to your savings account before you get into a real mortgage. This gives you a real idea of what it will be like to have a mortgage payment.

Make wise financial decisions for yourself, even if you do spend the first few years back at home saving for a home loan. Look at it from all directions. Do not forget to consider the benefits of an FHA loan, too.