Eligibility Requirements for HOPE for Homeowners Program
The eligibility requirements fit many upside-down homeowners. There is no credit score requirement.
- The home must be a principal place of residence.
- Home owners can't own any other property.
- The existing mortgage payments must exceed 31% of the home owner's gross monthly income.
- The home owner did not obtain the existing mortgage by falsifying loan documents.
- The home owner has not been convicted of fraud within the past 10 years.
- The loan was originated before January 1, 2008 and the borrower has made a minimum of six payments.
- The home owner is struggling to meet the mortgage obligations and can no longer afford to pay on the mortgage.
How Does HOPE for Homeowners Work?
- FHA will insure the new loan made by a conventional lender, which will replace a borrower's existing loans (resulting in debt forgiveness on upside-down properties).
- The loan will be funded at 90% of the property's appraised value.
- Borrowers will pay closing costs and an upfront mortgage premium of 3%.
- Upon eventual sale of the home, the borrowers must share a portion of future equity with the government, from 100% to 50%, depending on the date of sale.
Call your existing lender and then a participating HOPE for Homeowners lender.
