Mortgage Upside Down? Hope for Homeowners can Help!

Upside down has become a new buzz word for many Americans that hold mortgages.  If you are upside down on your home you can find relief with the hope for homeowners program. The principal balance of your current mortgage can be reduced using the hope to homeowners program. Monthly mortgage payments will be lower.

You can obtain a much better mortgage that will be based on the value of your home today.  Any additional balance left on your mortgage will go away.  Your new mortgage will be based on 90% of the current value of your home.

The end result will be much lower payments on your mortgage each month.  Mortgage payments may be reduced by as much as half of what you are currently paying. Houses will be saved for many homeowners.

Your new mortgage will be an FHA mortgage.  This means it is insured by the Federal Housing Administration.

Hope for homeowners will provide some much needed help for many Americans that own homes.  If you need help with an upside down loan, take the time to research this program.

You will need to provide income documentation in order to qualify for this loan.  Most of the standard mortgage guidelines will apply.  The big advantage is that you can drastically reduce your mortgage balance and your payment.

The government passed the hope for homeowners program on 07/30/08.  You must be living in your home to qualify for this program.  The program will expire on September 30, 2011.

This program does have guidelines.  The loan amount has also been capped by the FHA.

This is a great program for home owners that have been having trouble with their mortgage. The situation that you are in can be improved dramatically.

There is an equity sharing element to the hope to homeowners program.  Your old mortgage company will share in the equity of your home moving forward.  When you sell your home some of the proceeds will be given back to the original lender. It will depend on how much time has gone by since you started the program.  The FHA will also share in your home's equity moving forward.

Find out more on hope for homeowners.