If so, hope may be on the way!
The U.S. Department of Housing and Urban Development (HUD) announced adjustments to its refinance program which allows lender to offer refinancing options to homeowners who are upside-down on their loan, a problem occuring in some parts of Chicago. Beginning in September, the Federal Housing Administration (FHA) will begin offering non-FHA borrowers who have remained current on their existing loans opportunities to qualify for new FHA-insured mortgages. Their current mortgage lender must agree to write off at least ten percent of the unpaid principal balance for the program to work.
Standard FHA underwriting requirements must be met, as well, and the homeowner needs to have a credit score over 500. The property must be a primary residence. The combined loan-to-value ratio cannot exceed 115%, and other terms must be met. The U.S. Department of Treasury will encourage second lien holders who agree to reductions or cancellations with additional incentives. Call or email me to get a referral to a loan officer who can advise whether this is an option for you.