People who are selling their home should seriously consider refinancing their loan to a refinance underwater mortgage loan. These loans are available through some banks and credit unions and are usually easier to qualify for than a standard mortgage. At first, take a look at resources offered through a program sponsored by the Federal Home Loan Mortgage Corporation (usually called FHMP) or the Internal Revenue Service. This type of program helps underwater homeowners have trouble making their monthly payments with their current loan. Besides, there are a few programs to refinance an underwater mortgage when you not eligible for HARP. Call a foreclosure attorney when you need to know what will work for you best.
Requirements for Home Affordable Refinance Program (HARP)
HARP is the most affordable program for an underwater mortgage. It’s essential to know exactly if you are eligible for it. The first step in applying for the home affordable refinance program is to use a HARP evaluation. This helps the authorities to evaluate the condition of your home and assess whether you are eligible for refinancing or not. Your lender uses the evaluation report to decide whether you qualify for refinancing scheme or not. This program’s eligibility criteria are mainly based on the home value, age and weight of the harp, outstanding debt, and length of stay of the homeowners.
After reviewing your eligibility, you may receive a decision on your refinancing plan within two weeks. If approved, your new lender will give you a Refinancing Brochure and Mortgage Interest Rate quote, which will enable you to choose a suitable refinance mortgage scheme that offers you maximum loan flexibility. Your new mortgage lender will also provide you with a free no-obligation trial period, during which you can shop around for suitable home loan rates and terms. During the no-loan period, you get to see how much you can save every month with different mortgage rates. So, by taking advantage of this opportunity, you can quickly find out the best mortgage rate for you.
FHA Streamline Refinance Programs Saves Borrowers Money
FHA streamline refinances programs are not the same as conventional FHA loans. FHA Streamline refinances programs are designed for homeowners with adjustable-rate mortgages (ARM) beyond the standard introductory period. If your mortgage had been set to an introductory fixed rate, but you were put into an ARM above the average initial period, and you are now eligible for a fixed-rate mortgage, the FHA streamline refinances program may be the solution. This program allows you to get a reasonable rate on your FHA mortgage after making necessary modifications.
The purpose of an FHA refinances to make it easier for the borrower to pay down the principal balance of their mortgage. When lenders take an FHA Streamline refinances on a current FHA loan, the lender agrees to accept a lower interest rate on the new loan, which results in a more down monthly payment for the borrower.
To qualify for an FHA Streamline refinance, borrowers must have good credit, be debt-free, and have had their mortgage insurance for three or fewer years. Although FHA Streamline refinances, loans do not eliminate the borrower’s ability to file bankruptcy, the savings achieved by taking advantage of FHA Streamline refinance programs can help the borrower avoid some of the common pitfalls associated with FHA loans. This type of refinancing is also suitable for borrowers who have experienced a sudden increase in the cost of living, have experienced natural disasters, or are unemployed.
Getting a Mortgage Loan Through Fannie Mae and Freddie Mac
Freddie Mac and Fannie Mae are two of the most popular mortgage lenders in the United States. Millions of Americans own one or both of these loans. They both do very well, and both have many different features to them. In most cases, their loans are the best alternative to refinance underwater mortgage not eligible for the HARP program.
Both Freddie Mac and Fannie Mae offer bad credit mortgages. These are known as subprime mortgages because of the high-interest rates. These loans require a lot more documentation and strict guidelines from borrowers than regular mortgages. If you have a bad credit rating, you might not qualify for a standard mortgage. Subprime lenders require more stringent guidelines and less documentation to be eligible for these loans.
It takes about two months before you can apply for a mortgage loan through Freddie Mac or Fannie Mae. This is because you need to look around at the different offers from several different lenders. This will allow you to compare them against each other and choose what best suits your needs.
If you decide to go with either mortgage company, you will then be required to submit a credit application. You will probably have to have excellent credit. Otherwise, you won’t be approved for either loan. Once approved, you can get a check in the mail in about two weeks. Then you can get a referral from your lender to a remodelling company to get the job done.
Legal Help to Refinance Underwater Mortgage
If you are having problems paying off your debts, a foreclosure should give you a wake-up call. You may end up losing all the assets that you have put up as collateral, or even lose your property altogether should you fall behind your payments. This is why it is important that you contact legal to refinance foreclosure before you get into any legal tussle. A good company will help you to refinance an underwater mortgage even if you not eligible for HARP.
You may also be wondering how the bank will get you a refinance loan when you cannot prove your current address or do not have a steady source of income. Well, in the event that they cannot get you a new loan, they will simply ask you to pay off your existing loan and leave you out in the cold. This is why it is important that you contact legal to refinance foreclosure and see what kind of assistance you can get. This could be your last resort, but it will definitely make things easier for you in the end.
Refinance Underwater Mortgage Not Eligible for Harp 