It is designed to help borrowers who owe more than their home is worth and are current on their mortgage. Not all lenders have embraced this program yet, so the success of this is to still be seen.
The lender must agree to reduce the loan balance by at least 10% so that the new loan is no more than 97.75% of the home’s current value for it to qualify for the FHA refinance program.
Borrowers will have to pay transaction fees associated with refinancing. Because they’re getting an FHA-backed loan, they’ll also be paying mortgage insurance.
It is for owner occupant properties only. Also, if there is a second position loan, the combined mortgage debt on the first and second mortgages must be no greater than 115% of the property’s current value.
The so-called “short refinance” initiative differs from other modification programs because it’s available only to borrowers who are current on their loans; so far, most modifications have extended help primarily to borrowers who are delinquent.
This might be a great alternative for leads that do not fit your model to offer this information. In some cases, if the numbers look good enough, you might be able to get the borrower to do this and then do a subject to or wrap or lease option with them to control the property.
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If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
Here is a great website to get the FAQ's on this new program. http://blogs.wsj.com/developments/2010/09/06/the-fhas-short-refinance-pr...
It is designed to help borrowers who owe more than their home is worth and are current on their mortgage. Not all lenders have embraced this program yet, so the success of this is to still be seen.
The lender must agree to reduce the loan balance by at least 10% so that the new loan is no more than 97.75% of the home’s current value for it to qualify for the FHA refinance program.
Borrowers will have to pay transaction fees associated with refinancing. Because they’re getting an FHA-backed loan, they’ll also be paying mortgage insurance.
It is for owner occupant properties only. Also, if there is a second position loan, the combined mortgage debt on the first and second mortgages must be no greater than 115% of the property’s current value.
The so-called “short refinance” initiative differs from other modification programs because it’s available only to borrowers who are current on their loans; so far, most modifications have extended help primarily to borrowers who are delinquent.
This might be a great alternative for leads that do not fit your model to offer this information. In some cases, if the numbers look good enough, you might be able to get the borrower to do this and then do a subject to or wrap or lease option with them to control the property.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125