Comments on: HUD’s 1 Percent Solution http://www.fhaloanpros.com/2008/10/huds-1-percent-solution/ The Unofficial Guide to FHA Loans & Mortgages Sat, 21 Nov 2009 09:07:09 +0000 http://wordpress.org/?v=2.6 By: Wendy Workman http://www.fhaloanpros.com/2008/10/huds-1-percent-solution/#comment-28808 Wendy Workman Fri, 31 Oct 2008 14:52:46 +0000 http://www.fhaloanpros.com/?p=608#comment-28808 HUD's figures and Press Releases are misleading. Any of us in the Mortgage Industry that work directly with Homeownres know that is is next to impossible to qualify a borrower for FHA Secure and if they do qualify (credit wise) you are better off going with a straight FHA refi - which will also allow some mortgage lates. FHA Secure is not offered by all FHA Lenders and the ones that do partake have large increases in rate just for choosing that program. ALSO - FHA Secure allows the lender to finance the late payments into a second mortgage if those payments would carry the financing to over 100% of the houses value. Problem again! No lender is doing that 2nd mortgage - thus this very important part of the program can not be utilized. It was a good idea and could have saved many people's homes. FHA loosened the guidelines to allow lenders to help but, you can not force the lenders to take the risk. HUD’s figures and Press Releases are misleading. Any of us in the Mortgage Industry that work directly with Homeownres know that is is next to impossible to qualify a borrower for FHA Secure and if they do qualify (credit wise) you are better off going with a straight FHA refi - which will also allow some mortgage lates. FHA Secure is not offered by all FHA Lenders and the ones that do partake have large increases in rate just for choosing that program.
ALSO - FHA Secure allows the lender to finance the late payments into a second mortgage if those payments would carry the financing to over 100% of the houses value. Problem again! No lender is doing that 2nd mortgage - thus this very important part of the program can not be utilized.
It was a good idea and could have saved many people’s homes. FHA loosened the guidelines to allow lenders to help but, you can not force the lenders to take the risk.

]]> By: marc brenner http://www.fhaloanpros.com/2008/10/huds-1-percent-solution/#comment-28722 marc brenner Wed, 29 Oct 2008 17:23:09 +0000 http://www.fhaloanpros.com/?p=608#comment-28722 The Help for homeowners program needs some additional language . The bill states lenders can voluntarily write down the principle . As of Oct 29,this individual has not sourced one lender that will voluntarily write down principle . There needs to be incentives!!! How about a five year tax benefit or the govt issueing some type of credit for the amount voluntary write down. These lenders need good ,strong ,make sense incentives. The Help for homeowners program needs some additional language . The bill states lenders can voluntarily write down the principle . As of Oct 29,this individual has not sourced one lender that will voluntarily write down principle .

There needs to be incentives!!! How about a five year tax benefit or the govt issueing some type of credit for the amount voluntary write down.

These lenders need good ,strong ,make sense incentives.

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