Living in Oak Shores on Lake Nacimiento provides the ideal amount of relaxation and stress free living, and sometimes it’s easy to feel world’s away from all the ups and downs of the Real Estate market. Recently, however, the FHA devised a short refinance opportunity as an effort to encourage principal write-downs for responsible borrowers.
Beginning September 7, 2010, the Federal Housing Administration will offer “underwater” non-FHA borrowers the opportunity to qualify for a new FHA-insured mortgage. These borrowers are those that are completely current on their existing mortgage and whose lenders agree to write off at least 10% of the unpaid principal balance of their first mortgage which would bring that borrower’s combined loan-to-value ratio to no greater than 115%.
To qualify, the homeowner must have a credit score equal to or greater than 500, and must meet the FHA underwriting requirements in order to receive the loan. These changes and other programs, which were originally announced in March, are an effort to reach the 3 to 4 million homeowners who are struggling. “We’re throwing a life line out to those families who are current on their mortgage and are experiencing financial hardships because property values in their community have declined,’ noted FHA Commissioner David H. Stevens, “This is another tool to help overcome the negative equity problem facing many responsible homeowners who are looking to refinance into a safer, more secure mortgage product.”
In order to facilitate the refinancing of the new FHA-insured loans under this program, the U.S. Department of Treasury will offer incentives to current second lien holders who agree to full or partial extinguishments of the liens. Servicers must execute a Servicer Participation Agreement with Fannie Mae in its full capacity as financial agent for the U.S. on or before October 3, 2010 in order to be eligible.
If you have any questions on this new process or Lake Nacimiento real estate; please let me know! I’d be happy to answer your questions!
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Oak Shores Realty specializes in Oak Shores at Lake Nacimiento properties. Please contact us today to get more information on Lake Nacimiento lake homes. Oak Shores Realty can also provide you an insiders “Lake Nacimiento Buying Guide” with great information including maps and market information.
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