FHA Short Refi available for non-FHA borrowers with partial debt forgiveness
Starting last September (2010), the Federal Housing Administration (FHA) began offering qualified borrowers with non-FHA loans the option of refinancing into an FHA-insured mortgage. The current lender must also agree to write of a minimum of 10% of the current unpaid principle balance. In addition, all other lien holders must consent to allow the borrower to participate.
To participate, the following qualifications must be met:
– Current loan cannot be an FHA-insured loan.
– Borrower must owe more than the property is currently worth.
– Must be borrower’s primary residence.
– Borrower must be current on their payments.
– Borrower must meet standard FHA requirement.
– Credit Score not less than 500.
– Borrower’s current 1st lien holder must agree to write off a minimum of 10% of the current balance. After the write off, borrower’s combined loan-to-Value (LTV) cannot be over 115%.
– The new FHA-insured mortgage cannot have a LTV over 97.75%
The U.S. Department of the Treasury is offing incentive to junior lien holders who agree to reduce or eliminate their liens in order to facilitate the refinance.
Contact your lender to determine if they are participating in the program, and whether or not you are eligible.
Related Posts:
Advantages of the FHA 203k Renovation Loan
FHA financing with 500 credit score
Should you have any questions or need further information,
please don’t hesitate to contact me, (775) 220-1630
Or visit my website: www.SellingHomesinReno.com
Joshua Talayka
NAR designated: Short Sale & Foreclosure Resource
Chase International
Office: 775 850 5900
Toll Free: 877 922 5900
Cell: 775 220 1630
Fax: 775 850 5901
985 Damonte Ranch Pkwy, Ste. 110
Reno, Nevada (NV) 89521
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