What are the affordable housing qualifications?

Posted on Nov 30, 2012 in HARP Refinance

fha loan information
by burienundressedblog

Question by Charles: How long to get a VA loan after conventional short sale?
Short sale approximately 14 months ago. Are there any specific rules requiring a waiting period for a VA loan like there are for a FHA loan? If so how long? What is the reference document stating this?

Thank you.
Have a COE.

Best answer:

Answer by Dave
Have you applied for a VA Certificate of Eligibility? That’s the first step.

Give your answer to this question below!
Question by RiSiE H0TT STUFF[[LMA0]]: What are the affordable housing qualifications?
What are the qualifications and is it like a program or something that a person sign up for? Is it similar to section 8? If it is stated that an apartment complex is an affordable housing complex exactly what does that mean? Thanks sooo much!

Best answer:

Answer by andys2i
Some qualifications are:

1. Have a conforming loan backed by Fannie Mae or Freddie Mac. Approximately 60% of single-family “conforming” loans are backed by these Government controlled mortgage giants. These are the companies that buy the loans from your bank/servicer and then sell them to Wall Street. A conforming loan is one under $ 417, cheapest 000 in many areas — or up to $ 729,500 in certain high-cost areas like San Francisco, Boston or Washington, DC. Most home owners will have no idea if their loan is “backed” by Fannie or Freddie, but your lender or servicer does. So call them and then ask about qualifying under Obama’s housing plan.

2. Your Loan to Value ratio can now be as high as 105%. Under current conditions you cannot refinance mortgages where the loan-to-value (LTV) ratio exceeds 80 percent without some form of credit insurance. That insurance can be difficult or impossible to obtain in parts of the country that insurers have labeled declining markets, with high risks of further deterioration in values. Under the Obama housing plan, the LTV has been raised to 105%, which means you qualify even if you owe between 80-105% of your mortgage. However it you are severely “underwater” and owe more than 105% of their home’s value you will not qualify and may have to wait for mortgage relief via other lender driven provisions in the housing plan.

3. Allows borrowers with less than 20% equity in their homes to refinance to the current prevailing rate. However they must meet the above LTV criteria.

4. Timeframe Eligibilty. Only Loans that originated on or before January 1, 2009 are eligible for this program. The modification program will be in effect until the end of 2012, but loans can only be adjusted once.

5. Bonus Payments. Borrowers who keep up with their new payments will receive up to $ 1,000 a year in principal reduction, for up to five years.

6. Modification Threshold. Servicers will follow a specified sequence of steps in order to reduce the monthly payment (with government subsidies) to no more than 31% of gross monthly income (DTI).

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