FHA ‘Hope for Homeowners’ Program Up and Running
The Federal Housing Administration’s new Hope for Homeowners program, initiated on Oct. 1, has been welcomed by NAHB as a means for insuring new, more affordable mortgages for home owners who are struggling with burdensome payments on their current home loans.
“It was critical to get this program up and running quickly in order to help stem mounting mortgage foreclosures that add to unsold home inventories and undermine home prices,” said NAHB Chairman Sandy Dunn.
Under the program, the holder of a troubled mortgage must agree to accept, as payment-in-full, an amount equal to 87% of the current value of the mortgaged property. The borrower then receives a new, FHA-insured mortgage that represents 90% of the home's current value, with the 3% balance going to cover the borrower's upfront FHA mortgage insurance premium.
The home owner is then responsible for an annual mortgage insurance premium of 1.5%.
Eligible borrowers must meet a mortgage payment-to-income test and agree to share equity gains on their home with the federal government.
The recently enacted housing stimulus legislation, the Housing and Economic Recovery Act of 2008, provided FHA with an additional $300 billion in mortgage insurance authority to operate the new program for the next three years.
“Our members are hoping mortgage investors and servicers take full advantage of the Hope for Homeowners program,” said Jerry Howard, NAHB’s executive vice president and CEO. Replacing toxic mortgages with sound and affordable FHA-backed loans would go a long way in restoring order to what has been a very chaotic mortgage market.”
For more information on the program, click here; or e-mail David Ledford at NAHB, or call him at 800-368-5242 x8265.
Attend the NAHB Construction Forecast Conference on Oct. 22
Don't miss NAHB's 2008 Fall Construction Forecast Conference and Webcast for the latest economic news about the housing industry.
Join NAHB on Oct. 22 in Washington, D.C., where the country’s leading economists and finance experts will provide insight into the uncertainties of the housing market.
To register for the conference or Webcast, and to see the full conference agenda, visit www.nahb.org/cfc.
Want to Know the Housing Forecast for the Top 100 Metros?
Find out in HousingEconomic.com’s 2008 to 2009 Metro Forecast (free preview).
Get the metro forecast with in-depth analysis, overviews and downloadable Excel tables.
To learn more, visit www.HousingEconomics.com.
Free NAHB Kit Gives Builders Back-to-Basics Tips to Navigate the Slowdown
What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn.
To help members navigate the uncharted waters of this slowdown, NAHB has compiled a comprehensive “Back to Basics” online toolkit — the best of the basics, the tried and true and the truly new. To access the toolkit, click here.
To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar.
For assistance, call the NAHB Member Service Center at 800-368-5242.