Can a FHA mortgage help you to

 avoid Foreclosure?

 
   The FHA (Federal Housing Administration) under President Bush's economic stimulation package has introduced many sweeping changes in the FHA system. These initiatives were taken to help prevent bank foreclosures on private homes. The chief benefit has been to raise the loan limits to be reflective of the higher cost of homes. Thus, FHA has become an excellent tool for many home owners who were strapped with high interest loans to avoid foreclosure and now they are able to refinance at lower interest rates. Many persons who could not qualify for better loans offered by conventional lenders can now enjoy the lowest prevailing interest rates, thanks to an expanded FHA program. Please note the following loan limits per family units in the property:

1 family - $729,750

                2 families - $934,200

 3 families - $1,129,250

                 4 families - $1,403,400

     The qualifications to receive a FHA mortgage requires full documentation of income and assets; good mortgage payment history, with no more than three lates in an 18 month time period, also, the property must be owner occupied.

      Fico scores are becoming increasingly important with many banks requiring a minimal fico score of 620.  However, they are still some banks that will accept fico scores as low as 580, but they are now becoming very few.

       FHA can be the right answer to stop foreclosures for many persons who can qualify. They are many changes yet to come, and we hope they will offer a safety net for a wider spectrum of Americans facing bank foreclosure.

Let us know you are looking for mortgage option to avoid foreclosure

Would you like to cotribute with your story or need to ask others about their experience. Visit our Foreclosure Discussion Forum

From  Can a FHA mortgage help you to avoid Foreclosure page go to our Home page