Government Mortgage Help for First Time Buyers

Despite economic woes, there is now more government mortgage help for first  time buyers. The economic stimulus package included an infusion of money for state mortgage agencies to offer attractive rates to new homeowners. Programs in states like New York, New Jersey, and Connecticut are offering rates below those of conventional lenders, allowing new buyers to get loans they otherwise couldn’t.

New York Low Interest Rate Program for First Time Buyers

The State of New York Mortgage Agency (SONYMA) is offering first time buyers 30-year loans at 4.75% through their Low Interest Rate Program. In comparison, conventional lenders offer loans at around 5% to even their most qualified customers. While their Low Interest Rate Program is geared toward new homeowners, people who haven’t owned a home in the previous three years can also qualify. Low Interest Rate mortgages don’t require a minimum credit score, either, in contrast to the strict underwriting guidelines of conventional lenders. People can qualify with total monthly debt payments of 45% of monthly income and maybe even more. That’s 5% higher than most commercial lenders and well in excess of what financial counselors recommend.

While that may seem ill-advised, SONYMA states that Low Interest Rate borrowers default less frequently than people with conventional mortgages. Partly this is because borrowers have to keep mortgage insurance, for which they pay monthly premiums. To qualify, prospective buyers can’t exceed certain income limits, which change by area, and the home cannot exceed a price of $637,640. The program’s low rates will likely rise if conventional mortgage rates rise, but SONYMA maintains that rates will likely stay about a half a percent lower than conventional mortgage rates.

New Jersey’s Program for First Time Buyers
Other states like New Jersey and Connecticut have already or are in the process of dropping their rates for new homeowners, as well. The New Jersey Housing and Mortgage Finance Agency plans to drop rates for first time buyers from 5.75% to 5% in early April. Since most loans with a down payment of less than 20% are insured by the Federal Housing Administration, buyers must abide by the FHA’s policies and purchase mortgage insurance. Income limits and purchase price limits also apply. Most new homeowners who have gotten low interest mortgage loans also qualify for assistance with down payments and closing costs, averaging $7,500.

Connecticut’s Program for First Time Buyers
Connecticut also offers government mortgage help for first time buyers. Its new homeowner program has the lowest mortgage rates, currently at 4.375%. The Connecticut Housing Finance Authority points out that people who want to purchase homes in federally-targeted urban areas don’t need to be new homeowners to qualify. Other states have similar provisions in their affordable-housing programs.

People should note that brokers themselves might not offer these low interest mortgages. In New York, for example, lenders and brokers have to split New York’s commission payment, which makes brokers loathe to offer them. The big banks and many regional banks participate in the programs, however, so prospective buyers may need to contact them directly to take advantage.
Demand for all three programs has been strong. Given that conventional lenders are requiring stricter standards of home buyers, new homeowners often don’t qualify. Yet it is possible to get state-based government mortgage help for first time buyers, so prospective homeowners should be sure to check state websites for information.

what do when you are Underwater with your Mortgage

“Underwater” mortgages occur when a homeowner’s mortgage note balance is greater than the actual value of the home. Because the value of real property exceeded true market values as a result of loan saturation and real estate investment speculation, homeowner’s that took out first and second mortgages now find the value of the property to be less than the amount owing.

Mortgagees caught in this particular predicament may face rising mortgage payments due to ARM loans (Adjustable Rate Mortgages) and/or artificially high property taxes.
Ride out the real estate downturn:
Though underwater mortgagees may owe more than the property is worth that does not necessarily mean the borrower cannot afford the monthly mortgage payment. Mortgagees who are in this particular situation might attempt to ride the real estate downturn into recovery. Real property values have historically rebounded and if given enough time, borrowers may see a break-even point or an eventual appreciation greater than the mortgage balance.
Seek a loan modification:
Should an underwater borrower be unable to make mortgage payments in the near future, approaching the lender for options sooner rather than later is paramount. Lenders may offer short or long term forbearance agreements or a partial reinstatement. In any case of loan modification the borrower should know the fix is temporary and failure to meet any provision can negate the modification. Borrowers with FHA loans should consult HUD guidelines for federal loan modification plans and/or programs.
Rent the property out:
Another choice for underwater mortgage borrowers is to rent out the property and if necessary, cover the difference between the monthly rent and the mortgage payment. Homeowners should collect first and last month’s rent, along with a refundable security deposit.
Negotiate a short sale:
Borrowers that cannot wait out the real estate market or do not have the means to meet a forbearance plan and cannot meet or do not meet HUD guidelines, might elect to negotiate a short sale with the lender. In a short sale, the lender agrees to take a loss on the mortgage but may seek legal restitution even after the short sale has been approved and the property has sold.
File for bankruptcy:
Filing under Chapter 13 bankruptcy protection will allow the borrower to stay in the home but does not absolve the mortgage. Missed payments must be made up over the course of 60 months in addition to the regular mortgage payment.

How to deal with a mortgage company

For many people that own a home or own a mortgage, dealing with the mortgage company can be one of the most frustrating things that you can do. Mortgage companies often deal exclusively in numbers, and, thus, often disregard the human aspect that dealing with people entails. Banks and other financial institutions often have problems dealing with people because financial institutions deal with charts and graphs rather than the specific needs of the customers that they loan money to. This causes the relationship between the loaner and the borrower to be strained and stressful, often for both parties.

In order to alleviate this, there are several key rules that one needs to know about dealing with financial institutions that can make the repayment process much less strenuous.
The first thing to understand is that, even though your mortgage company is a company, they are still run by people. Often, if you explain a situation to the company, they will be willing to do whatever they can to cater to your specific situation. They know what it is like to have a catastrophe in the house or in the family that can result in a delayed payment of a mortgage or smaller payments made monthly.

Another thing to understand is that, your mortgage company may not be willing to cut you any slack. Even though some individuals will sympathize with your situation, they are not always able to help you. Sometimes the constrictions of the company will not allow the individual that you are dealing with to give you any slack. If this is the case, make sure not to get angry or upset with the individual. When they say that they cannot do anything because the company will not allow it, they are most likely telling the truth.

Another thing to understand about mortgage companies is that they are out to make money. Like any other company in society, their goal is to make a profit. And you are the person which they are looking to profit off of. If they are given the chance, they will make sure that your loan rate is high, because that will determine how much money they can make off of you. Even if you are able to sympathize with your rep that does not mean that your rep is always looking out for your best interest. Sometimes, the rep will give you a break, but the break will have strings attached.

Make sure you read the fine print, because that is where the big money making parts of the contract are hidden. Companies will often add fees that are not specified until after the first bill comes in and the mortgage has already been contracted.

Mortgage companies are not bad companies, but they are companies with profit in mind. That is not to say this makes them bad people, just business people. If you are having problems with your mortgage company, following these steps can take a world of pressure off you and help you understand their motivation.

Louisiana Government Mortgage Help

If you live in Louisiana and are having trouble paying your mortgage payments or are facing foreclosure, there may be help from you from the state government and others.
As soon as you know you will have trouble making your payment, you should call your lender. You will have more options if you are no more than one or two payments behind than you will later. A good lender will often be able to help you work through your financial problems and will not want to take your home away from you.

In Louisiana, it is possible to get mortgage help from your state government, national assistance programs, and state charities. You can receive help with bills, medical bills, health expenses, food assistance, and other items that will help you continue to be able to make your house payments.
Many state and local governments have assistance programs to help residents in paying or refinancing mortgages to stop or at least reduce foreclosures. The amount of help may vary from one state to another. It can include new mortgage loans; help with paying an existing mortgage, grants, mortgage counseling, and other help. You can also find help paying electric bills, and for child care.

On the website, http://www.hud.gov/local/la/renting/energyprgms.cfm  you can find out about programs to help you in any state, including, Louisiana. If there is not a specific program to help with your problem in your area of Louisiana, you might still get help with other things on the website, such as paying for your medical bills, help with your prescription drugs, charities that might provide financial assistance, community action agencies, which are public and private, and might offer financial assistance and counseling, and federal assistance programs.

Other Mortgage website also offers a link to programs in Louisiana to government programs that might help with mortgage payments. You might also receive assistance from a housing counselor in your area. A list of counselors recognized by the Federal Department of Housing and Urban Development can be found at hud.gov or by calling 1-800-569-4287.
If you need more help than the state might offer, or local charities, President Obama’s Mortgage Modification program might help you. Information can be found at the HUD website.

Government Mortgage Help in Philadelphia, PA

If you live in Philadelphia, Pennsylvania, and face foreclosure, there may be help available to you to help you stay in your home. Other cities–Louisville, Pittsburgh, and Chicago–are examining the program and have adopted similar programs. People on the verge of foreclosure, who have lived in their homes for years but face their homes being sold by the sheriff’s office, have been helped by the local Philadelphia program.

Philadelphia’s primary civil court requires anyone who is faced with foreclosure and who is living in his house to become involved in a "conciliation conference." The conference is a face to face meeting that attempts to work out a compromise between the homeowner and lender. Every homeowner is given counseling, and many are given legal representation.

Conciliation Conferences are scheduled in the City Hall in Philadelphia, on the sixth floor, every Thursday morning. Volunteer lawyers are present. Lawyers working for the mortgage companies are there too. Those facing foreclosure are there–some of them construction workers in overalls, some of them the elderly with canes, some of them parents, who have their children with them.
Deals worked out can include lower monthly payments for borrowers, or cash for leaving the property, if a homeowner can’t afford payments at even a modified rate.

No mortgage Deferral Program is available presently

As of today there are in fact no government programs directed at mortgage deferral. The American Recovery and Reinvestment Act of 2009 does provide relief for homeowners, but deferral is not among the options presently contained in the language of the bill. The government’s website, www.makinghomeaffordable.gov, details the current options for struggling homeowners.

The two available options for homeowners are refinancing their current mortgage, or modifying their current mortgage. The Home Affordable Refinance Program is for homeowners who have loan guarantees through Fannie Mae or Freddie Mac. The plan allows these homeowners to easily refinance their loans in order to make their monthly payments more affordable. The process is more of a hassle than the modification program because not only must you already be in a loan with Fannie Mae or Freddie Mac, but your credit has to be in good shape, this is the best option for those who foresee trouble on the horizon, but are still in current payment status. To be current you must not be more than 30 days late in the last 12 months.

The Home Affordable Modification Program modifies mortgages to enable homeowners to avoid foreclosure. Some aspects of loan modification contain deferral-like processes. Since you are not obtaining a new loan, your credit is not as much of a factor. To qualify, the home loan in question must be your primary residence, you must owe less than $729,750, you must have verifiable trouble meeting your mortgage requirements, your monthly payments must exceed 31% of your gross monthly income, and your lender must be a participant in the Home Affordable Modification Program.
Finding out if you qualify for either program is easy. Go to www.makinghomeaffordable.gov, you will be given the two options, either modification or refinance, take a quick questionnaire, and if you meet the initial criteria for either program, you will be given further instructions with contact numbers.

Having said that there is no “deferral” program available through recent recovery packages, some lenders do offer loan forbearance in some cases, forbearance is similar to modification, which is similar to a “deferral.” Forbearance involves moving existing debt or payments to the end of the loan, with added interest, whereas an actual deferral simply swaps your current payment for a future payment at the end of your contract, however, the government is not currently offering any assistance to qualify homeowners for forbearance contracts, only modification. Modification may include forbearance, if you meet the criteria at www.makinghomeaffordable.gov.

Government Mortgage Help for Retirees

Do you wonder what kind of government mortgage help there is for you, as a retiree? Some information to help the elderly stay in their homes can be found at the Department of Housing and Urban Development (HUD) official website, under the category, Information for Senior Citizens. There is information on reverse mortgages for senior citizens.

If you a retiree and are having a difficult time financially, either because of your mortgage, or for some other reason, a reverse mortgage might help you. Those 62 and older can receive a cash payment for the equity they have in their homes.

Maybe you are having other bills, such as medical bills, long-term care insurance, or some other major expense, that is making it hard for you to make the mortgage payment, the cash from a reverse mortgage could help you pay off those debts. It might then be easier to make your mortgage payments, or repay your reverse mortgage loan. Because you don’t have to repay the loan as long as you live in the house, a reverse mortgage could help you avoid foreclosure.
You can receive the money as a lump sum payment, monthly payments, or a combination of both. There are some reverse mortgages, such as HUD’s Home Equity Conversion Mortgage that will provide a line of credit you can you use whenever you need cash.
The advantage of a reverse mortgage is you would not have to repay the loan as long as you live in the house as your principal residence. If you have not paid it back when you die, however, your heirs, if any, will have to pay back the loan out of their inheritance, or their own pockets.

You can qualify for a reverse mortgage without a credit check. There are no income requirements. Although the program is often used for other purposes, such as making home improvements, buying cars, or vacations, it can provide mortgage help for those who need it.
HUD has a list of approved reverse mortgage counselors. You can search by state.

Another program that can provide mortgage help for retirees is not specifically for the elderly or retirees, but many such people can qualify for the program. President Obama’s mortgage program can help those who cannot make their monthly loan payments to receive a loan modification.

Your monthly payments might be reduced if your interest rate has increased, or you are receiving less money. You might qualify if your home is your primary residence, your mortgage is equal to or less than $729,750, you are having trouble paying your mortgage, and you received your mortgage before January 1, 2009.

Your payments would be reduced by reducing your interest rate to 2%, extending the loan term up to 40 years, and if you would defer a portion of the principal until the loan is paid, and waive interest on the deferred amount.

One other program, not specifically for retirees, but which could provide help for those facing foreclosure, including the elderly, is Fannie Mae’s Deed for Lease program. Those who face foreclosure may be able to stay in their homes by temporarily signing their lease back to the lender and renting the home at fair market value. More information can be found on the official Fannie Mae website.

Is Obama’s Mortgage Assistance Reaching You

President Obama’s mortgage relief program is now reaching 20% of those eligible for the program, or 650,000 borrowers, according to a new government report. More than 650,000 people have signed up for trials that will last at least five months, according to the Treasury Department for the program that had a slow beginning. As of last month, 16% of eligible homeowners had been reached with the program. Homeowners must be at least 60 days behind with their payments to be eligible.

Under modifications with the program, monthly payments will be reduced to an affordable amount–no more than 31% of a borrower’s pre-tax income. The president’s mortgage relief program began in March, but not many people applied at first. As of now, however, 920,000 loan modification offers have been given to about 3 million eligible homeowners. That is a total of 29 %. As of the end of July, offers had been made to only about 15% of eligible homeowners.
About 130,000 eligible California homeowners are enrolled in the “Making Home Affordable” loan modification program. President Obama introduced the program in February. Of the homeowners who were in foreclosure or two payments behind in the state, about 19% have enrolled.

Other states that have been hard hit by real estate problems have a similar amount of residents involved in the program. Arizona has 22% of eligible residents enrolled, Nevada, 18%. The number of people involved in Florida, 12% is much lower. Some believe that may be because a high number of investor owned homes did not qualify. The program is a $50 billion program.

Many housing advocated are still disappointed with the number of people who have signed up for the trials under the program. Government officials are pressing industry officials to improve performance. Many people have claimed that financial institutions lose their paperwork, transfer them repeatedly between departments, and ask them to fill out applications over and over.
Many economists are skeptical that President Obama will achieve his goal of reaching three to four million borrowers with the program within three years.

Those interested in President Obama’s mortgage relief program must complete a huge stack of paperwork to apply. They must also show they can make their payments on time. According to RealtyTrac, an online marketer of foreclosed homes, 937,840 homeowners filed for foreclosure in the third quarter of this year. Some housing counselors say the number of people being assisted by President Obama’s program is not nearly as high as the number of people being foreclosed upon.

John Taylor, head of the National Community Reinvestment Coalition says the president’s plan is “lagging behind” the number of foreclosures. Administration officials, however, say the program is on track.

 

More and more people in America are finding it more and more difficult to make their monthly mortgage payments. This is why so many people are losing their homes to foreclosure. With the economy on a downward spiral, it can often seem as if a family has no choice but to leave their home. However, thanks to the government home loan modification program, there is hope for families that want to keep their homes but may be experiencing financial struggles. The following includes some basic information about the government home loan modification program, eligibility, and how you might find more information about whether or not you qualify for it.

The government home loan modification program is one that is focused on helping homeowners save their properties from foreclosures. Basically, when a person can no longer make his or her monthly mortgage payments, the bank is forced to sometimes take back this property in the hopes of selling it to someone else. This has a negative effect on both parties: the bank loses money because it is not receiving consistent payment on the loan, and the individual and his or her family lose their home.

Government home loan modification is part of a program that is focused on making home ownership more accessible and affordable for Americans. To do this, the program takes government subsides and combines them with incentives for lenders. This encourages lenders to help people find better rates so that monthly payments are made more affordable and reasonable. In the process, principal amounts and interest rates lower so that people can keep their homes and so that lenders and services receive necessary cash flow.
Incentives are given to lenders so that they are more likely to modify or change home loans so that they match 31% of the person’s monthly gross income. Government officials project that this program will stop millions of foreclosures and could give the economy the boost it needs to succeed. Thus, this is a win-win situation for lenders and borrowers alike as well as for the general country.

You may qualify for this program if your home is your primary residence, if you owe $729,750 or less on your mortgage, if you invested in this mortgage before January 1, 2009, and if you have had trouble making your monthly payments. This last item may be because of a loss of job or reduction in income or if there has been an increase in your expenses because of something like illness.
If you want to apply for this program, you should do two things. First, take the time to call local lenders to see if they will work with you. Often, you can find this information out both in the local newspaper and online. Additionally, take the time to visit the government’s website. Here, you can answer a series of questions to ensure you qualify and can then find helpful information

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