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.

Government Mortgage Help for First Time Buyers is a post from: Government Mortgage Help

The Federal Housing Administration (FHA) recently announced that it is tightening lending standards. The agency insures mortgages for people with bad credit or who can’t put much money down. The new rules tighten standards for those with the worst credit and increase fees. They also suspend a rule forbidding the purchase of foreclosed properties, but leave the controversial down payment policy basically unchanged.

FHA’s Mortgage Mission
The FHA insures mortgages for people who otherwise wouldn’t qualify. It doesn’t loan money – instead it insures the mortgages of those with credit scores below 620. Buyers pay an FHA insurance premium, which they can pay in one of two ways. They can give the agency an upfront fee, which may be included in the total amount of the loan and amortized over its term. Or they can pay a monthly fee.

Criticism of FHA Mortgage Policies
When private lenders began tightening their standards in 2008, buyers increasingly chose mortgages insured by the FHA. Around 40% of new loans now originate with the FHA, leading to closer scrutiny of its policies. With its foreclosure rate increasing, the agency has received criticism for too lax standards that put taxpayer money at risk. As of December 2009, the FHA insured 5.8 million homes, of which more than half were delinquent and headed for foreclosure. Additionally, Congress mandates that the FHA keep a 2% cash-to-loan-reserve balance, but during the fall the agency had only .5% cash reserves.

FHA Raising Minimum Mortgage Standards
In response to such criticism, the FHA announced a series of changes. Starting in the spring of 2010, the upfront fee will increase from 1.75% to 2.25%. The monthly premium will basically remain the same. People with credit scores below 580 will now have to pay a 10% down payment; previously there were no such requirements for those with scores below 580. One of the more significant changes is the reduction in financing with an FHA mortgage. Previously, sellers could finance up to 6% of a home’s closing cost if the borrower had an FHA mortgage. That rate will soon become 3%.
On the upside, buyers will now be able to get an FHA loan on foreclosed properties. Previously, the agency had forbidden borrowers from purchasing any property that had changed hands in the preceding 90 days. The rule is meant to discourage house-flipping, but it also blocked buyers from the increasing pool of cheaper, foreclosed homes. This rule will be waived until 11 February 2011.

FHA Mortgage Down Payments Unchanged
The announcement doesn’t change one of the most controversial aspects of the FHA’s program: very low down payments. Commercial lenders generally require 15% or more, but the FHA lets buyers pay as little as 3.5%. That remains in effect, with a minor change. The FHA now requires that borrowers who want to pay the minimum down payment must have a credit score of at least 580. Previously, there was no required minimum credit score. But even so, the agency admits that most new borrowers already have credit scores higher than 580, so the requirement will likely have little effect.

FHA Mortgage: Tightening Lending Standards is a post from: Government Mortgage Help

Florida has been one of the hardest hit states when it comes to foreclosures. Listed in the top five states for foreclosures, cities such as Miami and Orlando have been hit considerably hard. In an effort to combat the ever increasing vacant property, the State of Florida has a few programs that can be used in conjunction with federal programs for down payment assistance.

The Florida Assist Loan program will provide potential buyers with up to $10,000 dollars in down payment assistance. This loan is a no interest, non amortizing loan given to the purchaser to help buy the property. This loan is set up as a second mortgage on the home, though no monthly payments are required. This loan is repaid only when you sell the house, pay off the first mortgage or refinance the home at a later date. Recipients must be at or below 80% of the areas median income to qualify for the program.

The Homeowner Assistance for Moderate Income (HAMI) Loan program offers people the opportunity to borrow up to $5,000 to use toward their down payment or closing costs. This loan is repaid at a standard 5% interest rate. You must qualify under certain income guidelines to receive this loan.

Because the housing crisis affecting Florida is so great, many county and city governments are also offering home buying incentives. Cities such as Orlando have devised incentives to encourage home ownership in their city. This is especially true for first time home buyers. Anyone that is interested in purchasing a home in Florida should research their local governments to see if any additional credits or programs are available.

The State of Florida has also established an Office of Community Affairs. This office was developed to help the citizens of Florida take advantage of any available program that would enhance their lives. Through this office you will be able to locate many programs that can assist you in purchasing a home.

Florida has realized that the state needs to make home buying easier for its citizens. With this in mind, they have created, or extended, many assistance programs that will help anyone purchase their own home. Foreclosures are still continuing to happen in the state at an alarming rate. This has forced home prices to record lows. Now is the perfect time for someone interested in buying a home to find a fantastic deal.

Florida Government Mortgage Assistance is a post from: Government Mortgage Help

Florida bankers move to dramatically speed up your foreclosure procedure, taking away more of your rights In the event bankers manage to get their method, Floridians going through foreclosure could possibly be kicked out of their residences within 3 months.

The Florida Bankers Association, the 400-member-strong lenders’ lobby, seems to have offered state legislators with a bill to upend years of Florida legislation and also create "non-judicial" foreclosures in Florida. With a non-judicial foreclosure Banks could hasten foreclosures next to defaulting house owners by bypassing the courts. Judges could no longer rule on foreclosure scenarios. Several states — 37 in fact — currently grant that fast-track foreclosure power, including California, Georgia, Alabama and Texas. But Florida, which consists of variety of trip and retiree properties, has always been huge on home owner privileges. If you’re a economically strapped Florida home owner — 62,719 Tampa Bay properties received foreclosure notices this past year — the 53-page bill contains worrisome indicators:

• Non-judicial foreclosures must end within no less than 3 months along with no more than 12 months. Many Florida foreclosures have a calendar year to Eighteen months to work through the courts nowadays, lengthier if a attorney at law fights a effective rear guard steps. So in 3 months banking institutions could theoretically auction your home out from beneath you.

• The Florida Supreme Court’s recently backed necessary mediation for loan providers and house owners would certainly effectively go bye-bye. The bill gives just for informal meetings among debt collectors and debtors.

• Even after homeowners are evicted, financial institutions could follow them for delinquent mortgage loan debt. Yet banking institutions will waive that right if property owners avoid trashing or stripping the house prior to new owner takes over.

The bankers association has called the bill The Florida Consumer Protection and Homeowner Credit Rehabilitation Act. Association president Alex Sanchez views the bill as a method to break a foreclosure crisis partially brought on by mortgage fraud. He provided a list of innocents the bankers target to help:

• neighbors frustrated by forgotten residences nearby;
• condominium associations pursuing dues from properties in legal limbo;
• cities grappling with urban blight;
• and judges overloaded with 1000s of foreclosure cases.

"We don’t want the property. We’re not into the property management business," Sanchez said regarding bankers. "We want to get a property out of the courts and sold to a productive Florida family.” Finalizing a foreclosure is time-consuming and pricey. The longer a property remains inside the courts, the more time financial institutions find absolutely no mortgage income from the property. One Tampa mortgage banker revealed this month that every foreclosure can charge lenders an additional $30,000 in legal costs.

The law would affect foreclosures after July 1, not previous cases already within the courts. Kristopher Fernandez, a Tampa foreclosure attorney, blames the banks themselves for much of the judicial foot dragging. "These cases are stuck in legal limbo because banks don’t want to push foreclosures," Fernandez said. "I’ve seen cases where nothing is done. The lenders don’t want these homes back. They know they have to pay assessments once they take them back."

Florida Bankers Attempt to Speed Up Foreclosure Procedure is a post from: Government Mortgage Help

Nowadays, most Americans are having difficulty in making mortgage loan payments. Hence, loss of homes to foreclosure has become a common issue. Another reason for this is the downfall of the economy. Fortunately, the government has come up with a solution in the form of the home loan modification program. The state of New York has programs that work with or work in conjunction to the federal government’s mortgage assistance.

A new bill has recently been passed in the State Legislature allowing prime mortgage borrowers to get foreclosure help from the New York Government. In addition to that, prime mortgage borrowers will be eligible for protection against foreclosure. Once the bill has been signed by Gov. David A. Paterson, the law will be effective and that should happen within the next two months. The New York government mortgage help programs have given hope to those struggling families who are facing a financial crisis and yet, want to keep their homes.

The basic function of the New York government mortgage program is to protect the homes and properties of families from foreclosures. Normally, when an individual fails to make her or his monthly mortgage payments, the individual’s property is forcefully taken away by the bank and usually sold off to someone else. However, this does not benefit either of the parties since there is a loss for the bank because of inconsistent payment while the individual concerned loses his or her property. Therefore, it is not practical.

The government mortgage help program aims to make the ownership of homes affordable, simpler and more accessible for the people. This is done by combining incentives for lenders with government subsidies. By doing so, the lenders are encouraged to assist people in finding better rates, thereby, making the monthly payments more reasonable and affordable. This in turns leads to the lowering of interest rates and principal amounts and is, therefore, beneficial to both parties concerned. There is adequate cash flow for services and lenders while homeowners face no problems in keeping their houses.
The lenders are provided with incentives so as to encourage them to make changes or modifications to the home loans and also, matching the 31% of the individual’s gross income per month. This mortgage help program on behalf of the government has given hope to the government officials that not only will millions of foreclosures be stopped but it will benefit the economy. Thus, the program is profitable to lenders, borrowers and the citizens of New York.
This program is available to those people who meet the following Mortgage Requirements:
• If the person’s home is the primary residence
• If the person owes $729,750 or less on mortgage
• If the mortgage was made before January 1, 2009
• If there was any problem in making the monthly payments
Application
To apply for this program, one must get in touch with local lenders to seek their assistance, by searching local newspapers and online sites. Secondly, one must answer a number of questions regarding their qualifications.

2010 NY Government Mortgage Help is a post from: Government Mortgage Help

Countrywide, the delinquency rate fell to a seasonally modified rate of Nine % coming from all mortgages unpaid as of the end of the 4th quarter. That’s down Seventeen basis points from the third quarter, but up 159 basis points from a year ago. A basis point is one-hundredth of a percentage point.

The MBA reported the actual decline within the 30-day delinquency rate is “a concrete sign” that the conclusion of the mortgage problems could possibly be nearby. Which is essential simply because mortgages that are 30 days past due usually function as major signal of significant delinquencies and foreclosures.

In Georgia, there has been 33,059 active trial mortgage loan modifications through January. Of them, 4,508 are actually permanently modified.

Atlanta is among the top Fifteen metro locations for HAMP activity, accounting for 3.2 % of total HAMP activity. The particular city had 30,285 active trial loan modifications through January. Of those, 3,692 were permanently modified.

Georgia is 3rd inside the US for Delinquent Mortgages is a post from: Government Mortgage Help

That the economy is hard right now is no secret. People are unemployed. Those that are fortunate enough to still have their jobs are finding that they are working longer hours, often for lower pay. They are struggling to pay their bills, including the mortgage. Making this already bleak picture even worse, is the fact that for many people, they now owe more on their house than it is worth.

It has always been commonly accepted that your home was an asset. People bought their houses for the stability, the investment and the financial security that they offered. By purchasing a home, people had something to fall back on in hard times. They made sure the mortgage was always paid, before all other bills. People would forego paying other credit card bills, and even buying groceries, because the mortgage was sacrosanct. Nothing stopped them from making that payment. In turn, their homes could be refinanced, equity tapped into.

This current economic situation finds homeowners in very bad positions. Not only are they finding that there is no equity in their homes to utilize, they are finding that the homes are worth much less than what is owed. This situation prevents them from being able to refinance the homes to achieve a lower monthly payment. Simply put, they find themselves in the position of struggling to keep a house that is not worth the payments they are making.

This creates a paradigm shift in the mentality regarding house payments. Once thought to be the comfort and safety that they couldn’t live without, they are starting to believe that keeping the house will be impossible. Therefore, people who once sacrificed all other debts in favor of the mortgage are now doing the exact opposite. They are sacrificing the mortgage in favor of keeping up with car payments and credit card payments. What once was an embarrassment has almost become a badge of honor. People who once would have never admitted to defaulting on their mortgages now are almost proud to say that they were forced to walk away from a mortgage on a house that was valued at less than the note. They are looking at rentals around them and deciding that they can very happily live in a smaller home where they will pay less in rent than they are currently paying on their mortgage.

Interestingly, this phenomenon is even happening with people who can afford to continue meeting the mortgage. Even people who can pay the mortgage are making the same decisions. There is a belief that the market will never recover, that they will never recoup their monthly investments in the property. These people begin to view the monthly mortgage not as money well-spent to protect a valuable asset, but as money thrown away. They are also making the painful decision to walk away from their mortgage in 2010. Like people who are unemployed and can not make the mortgage, they are realizing that they can live quite happily in a rental that requires a lower monthly commitment.

However, there is hope for some families. The Federal Government has a strong desire to see homeowners stay in their houses, and out of foreclosure. They are offering financial incentives to mortgage holders to work with homeowners. They are encouraging mortgage companies to meet with homeowners who are in default to rework the mortgages and offer lower interest rates. These lower interest rates can mean the difference between being able to make the mortgage and keep the house, or being forced into default.
Anyone currently facing foreclosure who wants to keep their home should contact their bank for more information on mortgage assistance. With the incentives being offered, there may be hope that you won’t have to walk away from your mortgage in 2010.

Walking Away From Your Mortgage in 2010 is a post from: Government Mortgage Help

If you are reading this then you are no doubt one of hundreds of thousands of Americans with a mortgage that has become nearly impossible to maintain. The state of California is seeing the highest rate of foreclosure in the history of the mortgage industry. Whether you have lost your job, your income has changed or simply cannot afford your mortgage payment any longer, there are ways to get help.

Before seeking help, one important thing to remember is that banks do not want to take your home. Sure, when it comes down to it, the banks will foreclose to protect their interest but foreclosure is extremely costly to the banks and will often cause them to lose money. It is more beneficial for the banks to work with you rather than against you.

When you are having trouble paying your mortgage, there are many different options that you can turn to. There are currently many options for government mortgage help in the state of California. The help you seek will of course be dependent on certain guidelines and restrictions.

Here are just some of the options available to homeowners in California:
1. The Making Home Affordable Program – This program is the brainchild of President Obama. There are actually two parts to this program. The first is the Home Affordable Refinance. Under this plan, if you are making your mortgage on time each month but can’t refinance due to owing more than the home is worth, this option may be able to help you refinance into a more affordable rate. The second option is the Home Affordable Modification. This option is for those who are behind on their payments or actually already in the foreclosure process. This plan can also be used by those who have experienced a recent hardship. Under this option you can modify your payments to get you into a payment that you can better afford.

2. HOPE for Homeowners – The HOPE for Homeowners program is for borrowers who are having trouble making their mortgage payments and are facing foreclosure. The HOPE for Homeowners program will refinance borrowers who can’t afford their current mortgage but would be able to afford a new loan insured by the Federal Housing Administration.

3. Local Resources – Depending on the county that you live in, there are various groups and organizations that can help you save your home. There are a lot of groups such as Consumer Credit Counseling and Acorn that can be of assistance if you are facing foreclosure. All of these organizations have different programs available.
Worrying about losing your home can be very traumatic and at times, it can overtake your life. Take solace in knowing that there is assistance out there. You simply have to find it and begin the process.

California Government Mortgage Help is a post from: Government Mortgage Help

“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.

Underwater Mortgage Options is a post from: Government Mortgage Help

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.

How to deal with a mortgage company during foreclosure is a post from: Government Mortgage Help