The process of paying off a current mortgage with a new loan, under new terms
HARP - designed for mortgages not eligible under traditional refinancing. Must be Fannie Mae or Freddie Mac, borrower must be current, and LTV must be greater than 80%.
FHA Short Refinance - designed for borrowers who are current on their mortgage but owe more than what their home is worth. Mortgage cannot be guaranteed by FHA, USDA, or VA; home must be primary residence, and borrower's debt cannot exceed more than 50% of borrower's income
Traditional Programs - offer a stable interest rate. Borrower has the option to choose to refinance to a 15, 20, or 30 year term.
FHA 2LP - if borrower has qualified for an FHA Short Refinance and they have a 2nd mortgage on the property, they may be eligible for a principal reduction or to completely eliminate the 2nd mortgage.
A sale of a property where the proceeds generated are less than what is owed on the property
HAFA - program allows borrower to sell property for an amount that falls 'short' of the principal balance owed. With this program, servicer waives amount that falls short, therefore releasing borrower from any debt after selling the property.
In-house Programs - all in-house programs vary by servicer
Loans backed by the value of the property and not based on the credit worthiness of the borrower
Designed for borrowers with limited options. Interest rates offered are as low as 7% with a maximum LTV of 65%. Popular loan if borrower cannot refinance due to bad credit or limited income, or is unable to modify due to excessive equity. Loan is based on the equity of the property instead of income or credit requirements.
The process of obtaining real estate
FHA Loans - designed for medium to low income borrowers who are unable to make a large down payment. FHA allows borrowers to borrow up to 97% of the value of the home. Typical FHA down payment is 3%, which can come from any source including a gift.
Conventional Loans - offer a larger variety of loans for the borrower. With conventional loans, the interest can be at a fixed rate or an adjustable, the terms can be from 15- 40 years, and there is no limit for the loan amount. Conventional loans typically have a 20% down payment requirement.
The process of liquidating real estate
Any property which is zoned for housing; can be a single-family property, multi-family property, town home, condominium, etc.
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Making Home Affordable Website- government program information
Mortgage News Daily- daily mortgage rates
Zillow- estimates on property values
Redfin - find a home
Realtor.com - find a home
The Mortgage Report- recent news on mortgages
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