New 2016 FHA Guidelines On Mortgage After Loan Modification

2016 FHA Guidelines On Mortgage After Loan Modification

2016 FHA Guidelines On Mortgage After Loan Modification for new home buyers require a one year mandatory waiting period. 2016 FHA Guidelines On Mortgage After Loan Modification applies for both FHA home purchase mortgage loans as well as FHA refinance mortgage loans. However, most homeowners who had a mortgage loan modification often get a reduced mortgage interest rate, some even as low as a 2% mortgage interest rate, that it is seldom to see a rate and term refinance mortgage after a mortgage loan modification. However, FHA mortgage loan borrowers can refinance with a FHA cash-out refinance mortgage . Home Buyers who had a prior loan modification can now qualify for a FHA Loan after loan modification after meeting the mandatory waiting period of 12 months after loan modification and other credit requirements under 2016 FHA Guidelines On Mortgage After Loan Modification.

2016 FHA Guidelines On Mortgage After Loan Modification: Credit Requirements

A mortgage loan modification is when a homeowner asks their mortgage lender to change the terms of their current mortgage loan and reduce their monthly mortgage payments because they can no longer afford the mortgage payments they currently have. There are many reasons why homeowners request loan modification but the most common reason for loan modification requests is due to unemployment and/or underemployment and other extenuating circumstances like divorce, health issues, or loss of business and major reduction of income.

If you have extenuating circumstances that you think that you cannot make your mortgage payments, contact your current mortgage lender immediately before you go into arrears. Mortgage lenders will work with you and can plan a forbearance or loan modification. Mortgage lenders do not want your home, no matter how much equity you have. To qualify for a loan modification, you need to be employed and the mortgage lender will want to see all of your financials, especially what you are currently making. The loan modification division of your mortgage company will thoroughly review your financials and current mortgage status and may decide that you are a great candidate of a loan modification. Once you are approved for a loan modification, the mortgage loan originator can present several programs that are best tailored to you. They may decide to put the amount that you are behind on the back of the mortgage balance and keep your mortgage payments and mortgage interest payments the same and prolong the term of the mortgage loan. Or they may decide to forgive part of the mortgage balance including the amount you are in arrears and reduce the mortgage interest rate so the monthly mortgage payments will be affordable to you. Whatever the case, once you have a mortgage loan modification and decide to sell your home and purchase another home, you can qualify for another FHA Loan. However, there is a one year mandatory waiting period after a loan modification and you need to have made your mortgage payments on time for the past 12 months. No late payments is allowed. Mortgage lenders also do not want to see any late payments whatsoever after a loan modification.

Borrowers Who Have Problems Getting Mortgage After Loan Modification

I get so many phone calls by mortgage loan borrowers who have trouble qualifying for FHA Loan after loan modification due to the mortgage lender overlays . As mentioned earlier, FHA requires a one year mandatory waiting period to qualify for a FHA Loan after loan modification as long as the borrower has been timely with all of their payments in the past twelve months. However, many mortgage lenders have their own waiting period after loan modification requirements. Some require two years after loan modification while others require a four year waiting period after loan modification for a mortgage loan borrower to qualify. If you have been told you do not qualify for a FHA Loan after loan modification by other lenders, no worries. Contact me at 262-716-8151 or email us at gcho@gustancho.com. We have no mortgage lender overlays on FHA Loans after loan modification.

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

Comments are closed.