Living in Charlotte County Florida

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FHA now has a short refinance opportunity for underwater homeowners

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FHA has a short refinance program.  This program is available for borrowers who are current on their loans and owe more than their properties are worth.  It must be for homes that are considered their primary residence.  It is intended only for people with non-FHA loans and the borrower must have a credit score of at least 500.

If a borrower is underwater, the bank or investor that owns the loan must agree to reduce the loan balance by at least 10% so that the new loan is no more than 97.75% of the home’s current value.  If the bank/investor is willing to take the loss, the borrower must agree to refinance into an FHA-backed loan at the current interest rate.

This program will allow a larger number of homeowners to stay in their home, where otherwise they may have walked away, tried to sell as a short sale, or even gone into foreclosure.   

Tammy Hayes, Realtor, Sandals Realty, Punta Gorda, FL


Author: tammyhayes

I am a residential realtor serving Charlotte and Sarasota Counties in sunny, southwest Florida. Contact me for all of your real estate needs. I am professional, ethical, informational, and understanding. I will be with you to assist you every step of the way. Whether you are buying or selling a home, I can help.

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