The Federal Housing Administration (FHA), has a new program that will guarantee $300 billion in mortgage loan payments starting October 2008 and ending September 2011. The program is known as the Hope for Homeowners Program and has been already signed into law. This name is appropriate because it will help financially stricken homeowners with mortgages.
The law allows homeowners to refinance schemes up to 90% of their current market value. This allows homeowners to extend their mortgage terms and receive a 10% equity share. You can also navigate to various sites for more information about easy loan programs.
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To encourage more people to buy a home, the law provides a $7500 tax credit for first-time buyers or new homeowners. This will help to eliminate unsightly neighborhoods and prevent future problems.
The HOPE program aims at overhauling FHA policies that were in place during the depression. It gives the US Treasury control over lending money to FHLMC, FNMA, and FHLMC until 2009. This program's main purpose is to help the country's declining housing market, which can cause economic problems.
This law allows for loan balances to be reduced up to 40% if the 10% equity has been secured. There are some restrictions on eligibility. You must be able to occupy the mortgaged property at present. Also, you must explain why you are not intending to default on the current mortgage. Aside from your current home, you must not own another property. For more information, ask your loan servicers.