HOPE FOR HOMEOWNERS
FREQUENTLY
ASKED QUESTIONS
General/Program related questions
What is the HOPE for Homeowners Program
(H4H)?
This new program, created by Congress, is intended to help
borrowers at risk of default and foreclosure refinance into
more affordable loans.
How
can the H4H program help me?
If you are having trouble making your mortgage payments,
this program may allow you to refinance your loan into a
new 30-year fixed rate loan with lower payments.
Do
I have to pay anything to apply?
There will be closing costs associated with HOPE for
Homeowners loans; however, they may not be required to be
paid out of pocket by the borrower.
How long will the process take?
Processing time will vary, but usually takes approximately
60 days. Please consult your lender when you apply.
What
information do I need to apply?
At a minimum you will need evidence of your income and
assets, as well as your current mortgage information.
How
long is the H4H program available?
The program began on October 1, 2008 and will end on
September 30, 2011.
What
interest rate will I receive?
The interest rate for the new H4H loan will be provided by
the lender and is based on current market rates.
I
don’t want another adjustable rate mortgage. Will this
interest rate be fixed or adjustable?
All
HOPE for Homeowners loans are 30-year FIXED RATE mortgages
insured by the Federal Housing Administration
(FHA).
Eligibility
questions
My lender has started foreclosure proceedings. Can I still
apply for H4H?
Yes,
however, time is of the essence.
Is there an income restriction?
No, but you will need to demonstrate that you have
sufficient, steady income to make the new H4H mortgage
payments.
I
recently filed for bankruptcy. Am I still able to apply for
H4H?
Yes,
borrowers in bankruptcy may participate; however, you will
want to consult with the person handling your bankruptcy.
My
lender has already foreclosed on my home. Can I still apply
for H4H?
It
may be possible depending on which stage of the foreclosure
process you are in. You should talk to your lender
immediately for more detailed information.
I
have a first and second mortgage on my home. Can I still
apply for H4H?
Yes,
however, all your existing lenders must agree to release
the liens against your home.
I
am current on my mortgage. Can I apply for
H4H?
Yes.
Will
I have to pay taxes on the portion of my loan(s) my current
lender(s) “write off” or forgive?
You should contact the Internal Revenue Service at
1-800-TAX-1040, or your tax advisor regarding tax-related
questions.
