MHA Re-Finance Information

MHA re-fi a 30 year fixed ranging from 4% to 2%. Qualifications are the following. Must be at your current job for a minimum of 2 years Must be current on your mortgage payment. NO CREDIT SCORE REQUIRED.

MHA Loan Modification Information

If you can no longer afford to make your monthly loan payments, or you have missed one or more payments, you may qualify for the Home Affordable Modification program. With this program your new payment will be no more than 31% of your pre-tax income or as low as 2%. After DTI calculations, borrowers could expect to receive below market rates as low as 2 percent. The rate will be fixed for a minimum of five years. In some cases, however, the calculation for the new rate may reach as low as 2 percent and the DTI may still be above 31 percent. For these cases, the lender will extend the amortization period and the maturity date up to 40 years. If the DTI still exceeds 31 percent, the lender must defer the principal. The deferred principal will be owed when the loan is paid off, refinanced or the house is sold; meanwhile, it will not accrue interest. What we do is a back end modification. For example, if you owe 500k on your mortgage, you will pay 1.2 million over the life of the loan. We go to the lender to get that 700k in interest cut in half, or future profits, cutting your payment by at least in half. **Tip: Your bank will often try to re direct you to a refinance. This is because it is a greater benefit to them financially to re finance you rather than modify you. With HAMP, you are submitted to the Federal Government, making it impossible for your lender to deny you. MORTGAGE INFORMATION

Traditional Bank Loan Modification

If you can no longer afford to make your monthly loan payments, or you have missed one or more payments, you may qualify for a traditional bank Modification. With this modification your new payment will be no more than 4% fixed principle and interest payment for the life of the loan, and as low as 2%. As with MHA modifications, after DTI calculations, borrowers could expect to receive below market rates as low as 2 percent. The rate will be fixed for a minimum of five years, but in most cases for the life of the loan. **Tip: Your bank will often try to re direct you to a refinance. This is because it is a greater benefit to them financially to re finance you rather than modify you. With HAMP, you are submitted to the Federal Government, making it impossible for your lender to deny you. With the T.A.R.P. Program, if you qualify as a homeowner who is behind and/or in financial trouble, you will not have to make your mortgage payment for 3 months provided you ARE IN THE PROCESS of a modification. The Troubled Asset Relief Program, commonly referred to as TARP, is a program of the United States government to purchase assets and equity from financial institutions to strengthen its financial sector. It is the largest component of the government’s measures in 2008 to address the sub prime mortgage crisis. TARP allows the United States Department of the Treasury to purchase or insure up to $700 Billion of "troubled assets", defined as residential or commercial mortgages and any securities, obligations, or other instruments that are based on or related to such mortgages, that in each case was originated or issued on or before January 1, 2009, and are in financial trouble. In short, this allows the Treasury to purchase the debt in default and pay the mortgages of homeowners in jeopardy of losing their homes for a period of 90 days during the modification process.