Hope for Homeowners Act 2008: Help For Coconut Creek Real Estate Owners

Capitol Hill

Today, President Bush signed the highly anticipated housing bill into law. The Hope for Homeowners Act 2008 is designed to bolster the current housing market and rescue mortgage powerhouses, Fannie Mae and Freddie Mac. So what does this act mean for current homeowners, especially those in Coconut Creek?

Many current homeowners are struggling financially and sadly enough, facing foreclosure on their homes. An estimated 400,000 homeowners will benefit from this act through a program being administered by the Federal Housing Administration. It will allow those who qualify to refinance their existing loans into less expensive, fixed rate mortgages. These new mortgages will be insured by the FHA and approval is required to participate. To qualify, you will need to meet the following criteria:

-You must live in your home and your mortgage must have been issued between January 2005 and January 2007.

-You must be spending 31% of your monthly income on mortgage payments

-You must prove that you will not be able to keep your existing loan

-You must attest that you are not defaulting on your loan solely to take advantage of this program

-You must deal with any debt, such as Home Equity Loans, prior to taking part in this program and agree not to use your home's equity as collateral for a loan for a period of 5 years

-Your current debt cannot exceed 95% of the home's value at the time of participation in the program

This program is voluntary, meaning that your lender may or may not agree to allow you to take part in this program. Contact your current lender or a FHA-approved lender for more information.

If you do not meet these requirements, there are other options available to help you avoid foreclosure. As a knowledgeable realtor, I can help you with any and all of your real estate needs. Contact me to find out how I can be of assistance to you!