Refinance Home Loan Bad Credit – There Are Options Available!

Friday, December 11th, 2009 at 6:42 am  
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For many people, their current mortgage loans have become unmanageable. In this case, refinancing the current mortgage is a sensible decision. However, if you are in need of Refinance Home Loan Bad Credit options, you may find that the options that are available to you are limited. The main thing to remember is that there are ways to obtain a better mortgage with a lower interest rate and possibly a lower payment than what you currently pay.

If your home is already financed with a FHA Mortgage Loan then you may be able to refinance with a FHA Streamline Refinance Mortgage. The FHA Streamline Refinance Mortgage loan is great option for you because it is much easier and quicker to do. There are less paperwork and lower costs than conventional refinance loans. You can get more information on FHA Streamline Refinance Mortgage by clicking on the link at the bottom of this article.

The first thing you should do is check your credit report, so you are aware of your current score as well as your individual credit history. This is important information that you need to know before applying for Refinance Home Loan Bad Credit options. Make sure you check with all three of the major credit reporting agencies. Under certain circumstances, you can even get this information for free.

Next, you need to consider your current score. If it is as bad as you first thought, then your Refinance Home Loan Bad Credit option is likely through your current mortgage company. So, don’t hesitate to call them. Ask to speak to a loan specialist. Once you reach the appropriate person, explain to them that you want to refinance your current loan, but you have poor credit. This will allow the loan specialist to know what your goal is and offer you some possible solutions to your problem. Read the rest of this entry

FHA Home Loans to the Rescue – Help For Struggling Homeowners

Friday, November 27th, 2009 at 2:26 pm  
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You can’t turn on the TV these days without seeing a news story about the U.S. economy in general and the housing market in particular. Starting in 2007, we began to see record numbers of home foreclosures, a trend that continued into 2008 (and one that shows no sign of slowing).

But for many homeowners, help is on the horizon. And it comes in the form of FHA refinance loans. Let’s take a closer look at this new program and what it promises to do.

Housing and Economic Recovery Act

The recently passed Housing and Economic Recovery Act of 2008 will help “at least 400,000 families” who are struggling with their mortgage payments and facing foreclosure. It will do this by providing FHA-insured refinance loans to switch the homeowners from high-rate ARM loans to lower fixed-rate mortgages. For those accepted into the program, the end result will be a lower monthly payment and more desirable fixed rate that will no longer adjust / increase.

History of the FHA

The Federal Housing Administration was created in 1934, during the Great Depression, to make home financing available to a greater number of Americans. The FHA does not actually make home loans to consumers. Instead, they insure certain loans made by private lending institutions.

You’ve probably heard the term “government-backed financing” before. The FHA program is an example of this. By having government insurance in their favor, private lenders are more willing to offer mortgages to borrowers they normally wouldn’t qualify (due to credit problems or other qualification issues). The lender is assured of getting their money back on the loan, even if the homeowner defaults and stops making payments. That’s what the FHA insurance does.

The Refinancing Angle

Traditionally, the FHA program was focused on helping buyers in the purchase of a home. But as a result of the aforementioned Housing and Economic Recovery Act, the program is being opened up to homeowners who want to refinance. According to the HUD website, “an estimated 400,000 borrowers in danger of losing their homes will be able to refinance into more affordable government-insured mortgages.” The program is slated to begin in October of 2008. To find out if you are eligible, visit the HUD website or refer to the Home Buying Institute resources mentioned at the end of this article.

Getting Away from ARM Loans

The goal of this new program is two-fold. It is designed to help struggling homeowners who have adjustable-rate mortgages (ARMs) convert to fixed rates. It’s also designed to lower their mortgage rates in the process. Lower rates and less uncertainty — a double win.

By: Brandon Cornett