FHA Loan Modifications Now Elegible
August 4th, 2009 | by ratefix |FHA loans (Federal Housing Administration) will be eligible for rate reductions similar to the Obama loan modification program currently in use for conventional loans.
As of August 15, 2009 distressed homeowners that have FHA loans may be able to refinance in order to avoid foreclosure.
The FHA mortgage modification program will work differently than the current loan modification program and will allow lenders to set aside up to 30 percent of the principal balance until the house is sold or the property is refinanced.
Lenders get a carrot too, as the FHA program will receive an incentive fee up to $1,250 and can get back $250 in costs.