If you are wondering how the new American Housing Rescue and Foreclosure Prevention Act can help you then you should know the requirements to use the new refinancing programs that are available.
Here is a list of the new requirements for people who want to use the FHA to refinance their home loan:
The mortgage must be within the FHA loan limits. The new limit is $625,500.
The FHA must hold the primary mortgage lien on the property. People who have more than one lien on their property will need to consolidate those loans and pay them off with their FHA loan at the time they refinance.
The FHA loan is based on the current appraised value of the home. The FHA is willing to finance up to 90% of the current appraised value, and if you owe more than this amount you may be able to get a financial break. The FHA is willing to work with lenders who would like the FHA guaranteed loan and take a monetary loss on the current mortgage in order to refinance with the FHA. Talk to your lender to see if they are willing to use this new program.
You must meet normal income loan requirements. The FHA may look past credit problems due to unfavorable past loan conditions, but you will still need to meet income to debt ratio guidelines set forth by the FHA.
All of these guidelines of the program are required by the FHA in order to use the new program and get relief on your high mortgage payments or to get out of default and avoid foreclosure. For more information go to http://fha.mortgageloanplace.com