There is no doubt that the foreclosure numbers for the year of 2008 are staggering. According to RealtyTrac.com, a leading industry monitoring website, some 860,000 properties were foreclosed on in 2008. That number is shocking, but what is even worse to consider is what the future holds. Many of you may be included in the next few month’s foreclosure numbers, unless you take the time now to talk to an FHA loan specialist who may be able to get you out of the loan or help you to have it modified.

What’s Next?

Consider this next year. The numbers for 2008 are from throughout the year. The problem is, many of the harshest layoffs and the largest job loss did not happen until the end of the year. They are still happening in January of 2009. That means that many of these individuals, who have lost their jobs or otherwise lost income are just now getting behind on their mortgages. The foreclosure process can take six months to go through. This translates into staggering numbers for the 2009 year. These foreclosures are not likely to hit the books for another four to six months. And, with thousands of people out of work, they will be incredibly deep and painful.

There is little that can be done about a home that is deep into the foreclosure process. Yet, for most individuals the process can be stopped long before it gets to that point.

Checklist of What to Do Now

If you are facing the fact of being unable to make payments on your mortgage, here are some things to do, now.

#1: Talk to your lender to find out if they can help with loan modification. They may be able to help you to get caught up. This is especially important if you wish to keep the home and have the income to make payments.

#2: Talk to an FHA loan specialist, or someone who can help you to qualify for an FHA loan. The FHA has put together special packages and outlines specific options for those who are suffering and are behind on their mortgages.

#3: Don’t wait. The longer you wait to get help for your mortgage loan, the more difficult it will be to get caught back up.

Foreclosure is not a process you can’t stop. You can, and with some help, you may save money in the process.

A Closer Look at the Numbers

What is happening around you? Take a look at a few more numbers as they came out just a few days ago.

•    In 2008, 1.1 million people received foreclosure notices in the combined states of Nevada, California, Florida and Arizona.

•    20 percent of the 1.1 million homes that entered the foreclosure process were located in California.

What is happening where you are? If you aren’t sure, you can use RealtyTrac.com to get a better idea.

Most individuals in foreclosure today are not in foreclosure because they are irresponsible or took on bad loans intentionally. They simply are struggling, which is why so many of them are just looking for help.

Is this you? To find out if you qualify for any type of loan modification or to freeze your foreclosure, contact one of the FHA loan specialists. There is no guarantee that every homeowner can remain in their homes, but many individuals can. The opportunities available through FHA are helping thousands of people each month to stay in their homes and to avoid foreclosure. They may be able to provide you with the help you need, too.

For those who are looking for an FHA loan, you may be happy to learn that the FHA still has some great loan opportunities available for those who qualify for them. The Federal Housing Authority, or FHA is still offering home loans requiring just 3.5 percent down. This is good news to anyone that is struggling to find a loan available to them do to the numerous issues with the credit crunch.

In the traditional, conventional loan market, there is no doubt you will have a difficult time finding a home loan that does not require a larger down payment to be made. Some lenders are now insisting on down payments at 20 percent of the home’s value. Those who cannot afford this may not have an option outside of the FHA loans available.

The FHA does still have loan opportunities available, including loan programs offering 3.5 percent down. A low down payment is the critical aspect for many potential home buyers. Having 20 percent or more to put down on a house is a great way to get a low rate and it enables lenders to look at you more favorably.  After all, after you have invested that much into the home, you are unlikely to just walk away from it. Since lenders are trying desperately to protect themselves from further foreclosures and subprime loans, they are simply sticking with what they know: those who invest in a larger down payment are less likely to walk away from their homes.

Are They Safe?

One of the biggest concerns people have today when it comes to FHA loans is security. Rightly so, people want to ensure that the home loans are going to be safe to have. When you work with an FHA loan specialist, you can ensure this is the case. Most lenders accepting these loans are well qualified to do so. Even if they do fold, you are highly unlikely to lose your loan or any of your financing. Still, you can speak to the specialists to learn more about this.

How To Get An FHA Loan

Since FHA loans do allow for the much lower down payment, many people are using them as the means to get the home they want. You will need to work with an FHA loan specialist to enable you to find out if you qualify for this type of loan insurance. You can get prequalified to purchase a home within a few minutes, too. Unlike a few years ago, standards have tightened, though.

•    You will need that 3.5% down payment or more
•    You will need to have no more than 31% of your gross income going towards paying your mortgage
•    You will need to have good credit. Those with serious delinquencies on their records may not receive approval.

If your credit score is lower than 500, though, you may need to pay a larger down payment, up to 10 percent. Moreover, as with all FHA loans, you will need to pay mortgage insurance during the first years of your loan.

You can find out if an FHA loan is right for you by contacting any of the FHA specialists available. They will ask you a few questions and get information about your credit score for you. Generally, the process takes only a few minutes to work through. You can get a quote for an FHA loan, too, so you can see if this is an option for you.

If you have 3.5 percent to put down and meet the other qualifications of FHA loans, now is one of the best times to get investing.

CNN Money.com published an article today about why FHA loans are gaining popularity.  You probably already know the reasons but to sum it up: 3.5% down (try finding less than that these days), low rates, and attractive loan limits.  I highly recommend taking a look their article because it has some great FHA info and good examples as well.

The housing market is struggling nationwide. That does not mean that your local market is struggling, though. Nearly all neighborhoods in the country have seen some fall in value. Yet, this does not mean that the horrors that are happening in some areas of California and Nevada are playing out in your back yard. Your area may actually have some strengths in it right now. Many markets are stable and many others are on the rise.

Before you right off the current condition to be too risky to invest in a home loan, find out what is happening in your local area. There are a variety of online appraisal websites that can give you a free estimate (which is not always 100 percent accurate, but close) to help you to see what is actually happening in your market. It may be that your area has just what you need: well-priced homes and affordable mortgage prices.

Contrary to what many people believe, there are still mortgage loans available to those who are qualified to get them. Does this mean you have to have a credit score in the 800’s to qualify? No. Those with scores much lower will qualify. To find out if you qualify, consider the following:

• Do you have steady employment?
• Do you have excessive debt: if so, you may not qualify if your debt is too high compared to the amount of money you are bringing in each month.
• Do you have a down payment: Down payment amounts are much lower for FHA loans, but some money to put down is necessary.
• Do you have good credit or better: Those with very low credit scores may not qualify for a home loan right now.

To find out if you qualify, it is best to talk with an FHA loan specialist one on one. They will help you to determine not only if you qualify but how much of a home you can purchase, the cost of a monthly mortgage payment, and the current interest rates available. It is highly recommended that you consider FHA loans since they are more affordable and they often cater to a wider array of home loan borrowers.

The local housing market and loan market is really the only concern you should have in terms of buying and selling property right now. While the big picture may seem dark, there are plenty of bright spots under that dark cloud. These are mainly average neighborhoods dotting the country and often are great places to call home.

You are likely hearing a lot about the FHA, or Federal Housing Administration. They have become the backbone of the housing market currently and likely will continue to play a significant role until the economic crisis and financial markets free up. This is a good thing since the FHA has a long history of providing stability in the American housing market. They could be the resource you need to get into a home loan.

While this blog is about the FHA and loan available through it, it may be important to take a step back and find out who this organization is and why they are even around.

The FHA was created by the National Housing Act of 1934. It was created during the Great Depression, as a way of helping to support the American people in finding loans to borrow money to buy homes. The goals of the organization are specific:

• Improve housing standards and conditions
• Provide home loan financing through an insurance program for mortgage lenders
• Stabilize the mortgage market

During the Great Depression, the banking system had fallen and home loans availability was next to nothing. People could not afford their homes. When the banks failed, any mortgages out during that time (which ere shorter term and had no amortization) were called due. This caused many homeowners to foreclose on their homes for lack of funds to pay back the loans. When the Federal Housing Administration was created, its initial goal was to help regulate the interest and terms of the mortgages. Now, more people could afford a down payment and the monthly payment of their loan.

Over the last 70 plus years, the job of the Federal Housing Administration has changed somewhat, but in most terms, it still has the same job of stabilizing the housing market, specifically in terms of the availability of loans to buy homes.

Today’s Job

The FHA provides a level of insurance protection for the commercial lender. You borrow an FHA approved loan through these commercial lenders. They agree to charge you a lower rate of interest for this protection. If you default on the loan, the lender is able to get a payout for your loan.

The FHA has become one of the backbones in the housing market right now and will continue to be so. Home ownership is one of the most important factors of success in an economy. This is why so much attention is being placed on this department of the government right now. To right the economy, the housing market has to stabilize.

If you are interested in getting a home loan, find out what FHA loans are available to help you accomplish this.

Looking for FHABook.com?  Don’t worry, you’re not in the “wrong” place.  It’s all right here.  As of December 2008, FHABook.com’s two principal writers are now full-time contributors to FHA Mortgage Center.com’s Blog as well as to our Consumer Guides, Loan Library, and all of our resouces on FHA Loans.

After being a fan of FHABook for some 2 years, our staff was happy to strike an arrangement to bring our forces together under one website.  If you’re a fan or reader from FHABook – please update your RSS feeds or blogroll mentions accordingly.  Welcome to FHAMC!

And if the new partnership isn’t enough to be excited about, this week will see the launch of our first project together with FHABook – the FHA Mortgage Center.com FHA Loan Guide.  It’s got everything a prospective home buyer could ever want to learn about using an FHA Loan.

This is just the first example of our collaborations yet to come, all in the name of keeping our readers and the general public informed about one of the most frequently-used home loan options on the market today.

President-Elect Obama announced that he would appoint Shaun Donovan to head up Secretary of Housing and Urban Development, or HUD. HUD is an important part of the mortgage industry, indirectly. This department is responsible for the housing within the country. In this administration, during this economy, this new Secretary will need to find ways to jumpstart the housing market to help individuals find the homes they need.

In his radio address on December 13th, Mr. Obama said this about the housing market: “To end this economic crisis, we must end the mortgage crisis where it began.” He continued, “This all started when Americans took out mortgages they couldn’t afford. Some were reckless, aware of the risks they were accepting. But many were innocent, tricked by lenders out to make a quick buck.” Later, he added, “This is deeply troubling. It not only shakes the foundation of our economy, but the foundation of the American Dream.”

Later in his broadcast, he mentioned that one in ten homeowners face some level of stress in regards to their homeownership.

What This Means To You

Depending on who you are and what your circumstances are, there is hope available. While the new administration will likely put in place programs to continue to support the housing within the country, there are many programs already in place to help struggling homeowners. Those facing foreclosure or the risk of getting behind on their mortgage should take the time now to contact an FHA loan specialist. Determine what your options are, including programs like HOPE for Homeowners and easy refinancing options already in place.

What about those who are looking for a home to purchase? Are they safe to buy? Many of the predator lenders are gone. They have lost their funding since investors are no longer willing to gamble with high risk mortgages. It is safe to borrow money. Commercial lenders are actively seeking borrowers who are qualified to borrow. Interest rates are very low and FHA loans are readily available to help those who are able to make payments to get into homes.

While you may not be able to improve the economic crisis fully, you can improve your financial security by considering new loans now. Home prices are low. Home interest rates on loans are low. Programs are in place for refinancing quickly and affordably. Determine if you qualify for a home loan through an FHA specialist. You may be happy to learn there are so many options available.

As a potential homeowner may find it difficult to qualify for a home loan in the current real estate mortgage market. With credit markets moving in every direction, it becomes very important for those who may want to buy a home to make wise decisions. FHA loans could be the way that people get into the homes of their dream homes, safely.

Today, the FHA helps to provide insurance backing for more than one third of all homes in the United States. Just a handful of years ago, few people took advantage of these loan programs. Many saw them as something for people who were non-creditworthy. Yet, this is no longer the case. In fact, it is safer to get your home mortgage loan through these FHA programs than it is to get your loan from other methods. In addition, it may even be less expensive.

Are FHA Loans The Only Option?

Much of the credit market’s liquidity has dried up. In many situations, it has become difficult to obtain these loans. Regardless of what is happening to help encourage banks to lend, it will still be likely that only well qualified individuals will be able to get affordable home loans through conventional loans. These loans are available, but there are fewer of them receiving approval than ever before.

FHA loans are more readily available. While they are not the only game in town, they definitely are becoming the most accessible option. In some markets, 60 to 80 percent of home loans are now FHA loans. These government backed loans are simply safer for the investor. They provide a bit of extra leverage for the investor to get back some of his money should you default on your home loan. Many of these investors have been burned by the recent foreclosure mess. They want protection for their investment. FHA loans provide this type of protection.

It is important to note that FHA loans are not government loans specifically. The government does not lend to borrowers. Rather, they provide a level of insurance to the commercial lender. You will still get your loan through a commercial bank. The only difference is that there is an insurance protection for the lender. If you default, the government will refund the lender up to a certain point for their loss. This reduces the risk of the lender.

FHA loans are a good option for many homeowners because of lower interest rates. Yet, until the housing market strengthens and the credit markets thaw, these loans are going t be the biggest game in town.

With the current economic crisis in line, many individuals are wondering what they should be doing about their current mortgages. The Federal Reserve is again considering a drop in the key lending rate paid by commercial lenders to borrow money. This rate then is translated to the average consumer at a higher level, of course. Nevertheless, when this key lending rate is cut by the Fed it does translate into a lower interest rate for most all consumers. Does this mean anything to you, as a mortgage holder?

It Should

For those currently with an interest rate higher than the average rate, consider your options for refinancing.  A drop in this lending rate would likely translate into a lower interest rate available for most qualified home buyers or mortgage borrowers. If you currently have a mortgage, you could, potentially, refinance the home loan you have. This would translate into a lower monthly payment and a lower cost in the home loan totally.

Here are some numbers to consider:

Let’s say you have a mortgage loan of $150,000 and your home is appraised for at least that much. Your current interest rate is 8 percent. You are likely paying about $1100 a month. When you finish repaying your mortgage loan, you would have paid more than $246,000 worth of interest alone (not including the original borrowed $150,000.)

If interest rates drop as they should, you could see current rates fall as low as 5 percent. You refinance your $150,000 mortgage for 30 years at this new rate. Your monthly payment would drop to about $805. More importantly, over the course of the loan, you would pay a bit more than $139,800 in interest, plus the principle. As you can see, that’s a sizable difference and it is your money, after all. It is over $106,000 of your money, in fact.

What To Do

If you know that your home’s value is high enough to refinance, you should consider it. If you are unsure, you can contact any of the FHA loan specialists available to help you. Remember that even those with credit that may not be perfect can qualify for FHA loans. In addition, these loans often help you to qualify for lower down payments on standard loans and easier refinancing terms if you currently have an FHA loan.

In other words, if interest rates do drop, you should be part of that benefit.

With the economy so low, you may be struggling to keep up with payments and you are worried about your job. This may be a good time to refinance. FHA mortgage refinancing is an option that many homeowners want to consider. Interest rates are very low right now, the lowest they have been in the last few years. Lenders are looking harder and faster for new borrowers that are qualified. Refinancing your home loan that is in good standing is relatively easy to do, right now.

3 Reasons To Refinance Now

Why should you refinance your home loan right now? Take into consideration the following 3 reasons.

#1: Interest Rates Are Lower

Interest rates are a fraction of what they normally are. Many economists believe they are at the lowest they will go. This means that you won’t get a much lower rate any time in the near future, assuming they are right. If you have a home loan that currently has an interest rate that is one or more percentage points higher than what FHA lender can provide you, consider the benefits of refinancing.

#2: Refinancing May Cut Monthly Payments

Another reason to refinance right now is that you could get a lower monthly payment, which can help many to put more money in the bank, have more money for every day needs and even help to feel more secure financing in the current economy. You can extend the terms of your loan to cut the amount you pay each month. Or, if your current interest rate is high, you will save money simply by refinancing at a lower rate.

#3: A Fast, Easy Refinancing Program Is Available

If you already have an FHA insured mortgage, that is current, and you will be refinancing to lower your monthly loan payment, and do not plan to take any cash out of the loan, you can qualify for the FHA streamline refinance. It is a simple, no hassle way of refinancing. You simply need to work with an FHA loan specialist to help you to qualify. There is minimal cost, minimal documentation required and smaller underwriting requirements.

Worried?

I have spoken to a number of people right now that are worried about losing their home or their job. They fear that they will be unable to make payments, especially those that have a mortgage that will be adjusting in the next 12 months. Yet, there is hope available to help you through the process.

Refinancing FHA mortgage loans like this can help you to lower you monthly commitment. There are a variety of programs available to help you get into a home loan you can afford. You do not have to worry about your home, but you do have to be proactive. If you can save a few hundred dollars a month off your mortgage payment, would it e worth going through the process of refinancing? For most, the answer is yes.

Definitely take the time to consider the benefits.

When It’s Not Time To Refinance

There are some situations where refinancing FHA mortgages may not be in your best interest:

• If you have a comparable low interest rate already, there is likely no benefit to refinancing unless you change the terms of the loan.
• If you have very poor credit right now, you may need to work on boosting that credit before you will be able to qualify for an FHA loan.
• If your home is in foreclosure, and is too far into the process, there may not be the option to refinance.

Before you make that decision on your own, though, be sure to contact the FHA loan specialists here. They can provide you with guidance as to if you qualify and what the benefits of refinancing your FHA mortgage will be. Even if you are in foreclosure, they may be able to help.