Homeowners who have an underwater mortgage may qualify for a new underwater mortgage refinancing program from the Federal Housing Administration. The FHA underwater mortgage refinancing opportunity may also allow homeowners to receive a principal reduction in cases where their home has lost value.
Underwater mortgages have become a problem for many across the nation as property values have dropped in many areas. The loss in a home’s value has created trouble for some homeowners who are unable to meet their monthly mortgage payment due to the type of mortgage they have associated with their underwater home.
This new FHA underwater mortgage refinancing opportunity is set to assist homeowners who are current on their mortgage and who have a lender that will write off at least 10% of the principal balance of the primary mortgage. These homeowners may have the opportunity to qualify for an FHA-insured mortgage, which if they meet the qualifications of this program may be more affordable.
Negative equity has prevented many homeowners from refinancing to a more secure mortgage, as some homeowners have attempted to refinance to a fixed-rate mortgage and take advantage of low mortgage interest rates that are currently being offered but are unable to do so simply because their home is underwater.
In cases where homeowners may have trouble meeting their monthly mortgage payment or are simply in a situation where they owe more on their home than their home is worth and are seeking a more affordable mortgage, this Federal Housing Administration underwater mortgage opportunity may, again, bring principal reductions and a more affordable mortgage for homeowners troubled by devaluation on their property.