Here is the chart that we use for our loss mitigation team of housing counselors and legal services attorneys at the Center for NYC Neighborhoods
Product Name Help for Homeowners (H4H) Eligible Loans Any type of first mortgage that was originated on or before January 1, 2008. Borrower must have made at least six (6) payments on the existing mortgage. The borrower may be current or delinquent at the time the new H4H mortgage is originated. Terms 30 year fixed Rate Standard FHA market rate as set by lender Prepaids/Origination Fees Standard FHA including 1% cap on origination fees Mortgage Insurance Upfront Mortgage Insurance Premium (UFMIP) is 3% and the Annual is 1.5%. The UFMIP may be financed if the loan does not exceed 90% LTV Asset Test Must be borrower's first and only property Credit Standard Borrowers who are current or delinquent[1] on their mortgage at the time of the refinance Cannot have intentionally defaulted on their mortgage or any other debt (i.e. had available funds that could pay the mortgage and other debts without hardship. Debts subject to a documented bona fide dispute may be excluded.) Must have made a minimum of six (6) full payments during the life of the existing senior mortgage Loan-to-Value (LTV) 90% Eligible Properties Must be primary and only residence in which the borrower has an ownership interest. Only 1-unit properties are eligible, including condominiums, cooperative units and manufactured housing permanently affixed to realty. Existing Liens All existing lien holders must waive prepayment penalties and late charges, as well as extinguish all liens against the property. This loan must be first lien. Existing first lien holders are required to accept the proceeds of the H4H mortgage as payment in full. Appreciation Sharing Requirement Borrowers will be required to share both the initial equity created with the H4H loan, and future appreciation.[2] Maximum Loan Amount $550,440, nationwide. Additional Requirements: Borrowers existing total monthly mortgage payment exceeds 31% of their gross monthly income in March of 2008. Borrower's total monthly mortgage payment on the new H4H loan is less than the borrower's total monthly mortgage payment on existing loans. Ratios 31/43. However, if the borrower has successfully completed a 3-month trial modification, ratios can be expanded not to exceed 38/50. Income Verification Borrower's income tax returns for the previous two years. Non-Occupying Co-signers: Not allowed. Any existing non-occupying co-borrower will be required to quit claim their interest in the property prior to application. Closing Costs Standard FHA policy regarding closing costs is applicable, including the 1% cap on origination fees. Borrowers may pay closing costs from their own assets. They may be financed into the mortgage provided the 90% LTV limit is not exceeded. The servicing lender, originating lender and/or a third party (e.g. a federal, state or local program). The originating lender my pay the borrower's closing costs and prepaid items through premium pricing. Subordinate Financing Subordinate financing is not allowed in the first 5 years of the mortgage except when necessary to ensure maintenance of property standards. [1] Borrowers in bankruptcy are not precluded by FHA requirements from participating in the H4H Program. [2] To encourage subordinate lien holders to participate in the negotiation process and release their liens, FHA has the authority to share with them the government's portion of any future appreciation in the property's value. At settlement, subordinate lien holders will receive a certificate that evidences their interest as an obligation backed by HUD, with payment conditional on the value of HUD's appreciation share. Please see mortgagee letters 08-29 and 08-30 <http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/index.cfm> for more details. [Non-text portions of this message have been removed] ------------------------------------ Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/AsburyPark/ <*> Your email settings: Individual Email | Traditional <*> To change settings online go to: http://groups.yahoo.com/group/AsburyPark/join (Yahoo! ID required) <*> To change settings via email: mailto:[EMAIL PROTECTED] mailto:[EMAIL PROTECTED] <*> To unsubscribe from this group, send an email to: [EMAIL PROTECTED] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/
