Will the New Housing Law Help Me?

Many people are excited about how the Housing and Economic Recovery Act of 2008 is going to help homeowners keep their homes by refinancing their mortgage loans to reflect the current market value of their home and getting a federally insured mortgage through HUD. However, there are certain eligibility requirements.

If you are interested in refinancing your loan through the FHA in the new programs they offer in the Housing and Economic Recovery Act of 2008 then you should be aware of the guidelines for eligibility. These guidelines include:

  • The home you are refinancing must be occupied by you and be your primary residence. No investment properties will be considered.
  • The homeowner can not have been convicted of fraud.
  • The homeowner can not have intentionally missed mortgage payment which resulted in default or foreclosure proceedings for any reason.
  • As of March 1, 2008, a homeowner must have to pay more than 31% of their income to their mortgage payment.
  • A homeowner must contact an FHA approved lender. The lender will require certain information in order to check eligibility requirements.
  • If the eligibility requirements are met then the FHA approved lender will pay off the existing mortgage loan on the home and create the new mortgage with more favorable terms and conditions.
  • Even if you contact your lender and want to refinance your lender may not allow it. Not all lenders will choose to participate in the FHA homeowners relief programs.

Get Started With Your FHA Loan Request

Take the first step toward your FHA Loan by getting in touch with a FHA Specialist.

Loan Type: Home Purchase FHA Refinance

Property State:

For those people who are eligible for refinancing and other relief under the Housing and Economic Recovery Act of 2008 you can contact a FHA approved lender or go to the HUD website for more information.

Return back to the FHA Mortgage Center.com home or the FHA Lending Guide.