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Under water Mortgages

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jamesac2
Established Member

Under water Mortgages

Does any one have information on a FHA Loans and what happens if your home is "under water" Thanks 

Message 1 of 8
7 REPLIES 7
Lel
Moderator Emeritus

Re: Under water Mortgages

You're trying to refinance your mortgage, is that correct?  You might have to look into the US Government's Home Affordable Refinance program (not the modification program).

Message 2 of 8
jamesac2
Established Member

Re: Under water Mortgages

I dont qualify as I am current on my monthly Mortgage and it is not a Fannie MAc loan. Thanks

Message 3 of 8
Lel
Moderator Emeritus

Re: Under water Mortgages

Being current is actually a requirement for the Refinance program, but since you don't have Fannie or Freddie as an investor then it's a moot point.  I don't have any information about a similar FHA program.

Message 4 of 8
Lel
Moderator Emeritus

Re: Under water Mortgages

Thread is unlocked.  A message was removed that was irrelevant to the OP's question, and really just amounted to editorializing about the housing crisis and offered no legitimate help to the OP.

 

If anyone would like to render their opinion on the housing crisis, please feel free to participate in the thread dedicated to that discussion.  Thank you.

Message 5 of 8
ShanetheMortgageMan
Super Contributor

Re: Under water Mortgages

What are you looking to do and why?  Just being underwater is usually not a big concern, unless you are trying to sell, refinance, etc.

Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
Message 6 of 8
jamesac2
Established Member

Re: Under water Mortgages

refinance

Message 7 of 8
ShanetheMortgageMan
Super Contributor

Re: Under water Mortgages

Why the need to refinance?  Are you in an ARM, looking for a lower rate, looking to take cash out?

 

If you aren't looking to take cash out, FHA offers a streamline refinance option which does not require an appraisal.

 

Full streamline guidelines can be found at Mortgagee Letter 09-32 (MS Word document).

 

However when you don't get an appraisal, the new loan amount is limited to the outstanding principal balance (including accrued interest), minus any refund of the Upfront Mortgage Insurance you are entitled to, and then you can tack on the new mortgage insurance premium on top of that.  You cannot include closing costs/pre-paid items into the new loan amount on a streamline refinance without an appraisal;  in order to include those items you need to get an appraisal and then the loan amount also cannot exceed 97.75% of the appraised value.

Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
Message 8 of 8
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