4 loan programs for “upside down” home owners

In my area, Boise Idaho, the home values jumped from 2004-2007 and as a result, many homeowners bought at the peak prices.  In 2012 interest rartes are much lower but most of those homeowners owe more than their home is worth.

The “upside down” homeowner may think that they cannot refinance and lower their mortgage payments, but there are options available right now.

1. VA Interest Rate Reduction Refinance Loan, or IRRRL:  If you ahve a VA loan,and have been current on your payment the last 12 months, then you may refinance your mortgage without having to get a new appraisal.

2.  FHA streamline refinance:  The same as the VA IRRRL, you may refinace into a lower rate without having to get a new appraisal.

3.  USDA  Rural Developement refinance:  This is a new program that was recently rolled out in a few test states.  It doesn’t require a new appraisal to get a lower interest rate.

4.  Home Affordale Refinace Program, or HARP:  If you ahve a Fannie Mae or Freddie Mac owned loan prior to 5/31/2009, you may refinance regardless of how far upside down your are.

Now with all of these programs, there are different requirements and features that are too numberous for one posting.  Some lenders hsve “overlays” on the programs that may add additional requirements to the basic loan progra.  for example, many lenders require some sort of appraisal on a VA IRRRL.  I have several, that follow the program’s guidelines of no new appraisal needed.

If you are talking to a mortgage lender and they dont have the no appraisal requirement, then call around until you find one who follows the intent of the program.  If you are in Idaho and need help with a FHA Streamline Refinance, VA IRRRL, or a Home Affordable Refinance Program loan, you can call me and I can help you lower your mortgage payment.

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