Stimulus Second Mortgage Program, Ready to Give Help for Homeowners

Tennessee foreclosure residential properties have reached to over 24,000 according to RealtyTrac, a California-based firm that records foreclosure activities in the United States. The trend has been causing a lot of trouble to borrowers that the federal government has made a program in order to give help for homeowners living in the hardest hit areas such as Tennessee.The Stimulus Second Mortgage Program is under the management of The Tennessee Housing Development Agency which aims to assist homeowners in purchasing a new house by providing a loan that funds at least 3.5 percent of the total housing cost. In order to qualify for the program, you have to meet the following requirements:You are a first time home buyer with a credit score of at least 620.
You will be able to repay the Stimulus Loan until June of next year (without interest).
Homebuyer must not exceed the maximum household income set by the THDA.
The mortgage must be under the FHA.
Borrower must undergo a Homebuyer Education provided by the state of Tennessee before he or she can apply for the said mortgage help.
The loan servicer (both on the first and second mortgage) must be approved by the HUD. Furthermore, mortgage must be serviced by the U.S. Bank.In order to repay the loan, you may use your federal tax refund and repay before June, 2011. If you are unable to pay after the due date, an interest rate of 1 percent will be added on your regular monthly payment which must be paid within the period of ten years. Make sure that debts are paid otherwise; your THDA Stimulus Loan will be in default.Recently, the Congress passed the 2009 Tax Act also known as the American Recovery and Reinvestment Tax Act of 2009. The new bill gives exceptions to homeowners who have purchased their first homes between January to November, 2009. This means that the new homeowner can receive a tax credit without the required repayment. The only requirement is for the homeowner to occupy the property for at least three years. This is a great help for homeowners who cannot afford to repay their mortgages in a short period of time.To obtain this new help for homeowners, visit the Tennessee Housing Development Agency at 404 James Robertson Parkway, Suite 1200, Nashville, TN. The THDA offices are ready to serve you during weekdays from 8 am to 4 pm. For inquiries and suggestions, look for Ed Lozier or contact him at 615-815-2082. You may also log on to for additional information regarding the different programs available in the state of Tennessee.

A Comprehensive Description of Home Affordable Refinancing, a Federal Loan Modification Program

The Home Affordable Refinancing is part of Obama’s Making Home Affordable Program which aims to provide help to refinance mortgage rates of some qualified American homeowners; it is a federal loan modification program for troubled borrowers who are current in their monthly loan payments but are unable to refinance a lower interest rate due to the decreasing home value of his or her property. Moreover, it is available for borrowers who have mortgages under Fannie Mae or Freddie Mac only. Once your loan has been modified, it may result in a decreased monthly principal or interest payments which places borrowers in a better position to afford their mortgages. It may also convert a risky loan structure into a more stable one to avoid foreclosure filings in the future especially since home prices continue to fall as the US economy remain in this condition.To apply for this federal loan modification program, the home with which you are seeking to refinance must be a one to four unit residential property, the mortgage must be owned by Fannie Mae or Freddie Mac, you must be current on your monthly mortgage payments which means that you are not behind more than 30 days on your loan payments within one year, and you must own only one residential property under one mortgage.When your loan has been modified or your mortgage payment has reduced, make sure that you pay off your outstanding balance to avoid receiving a notice permanently. Your lenders can file for foreclosure and proceed with a public auction once you begin to make default payments again, especially when you have been given the opportunity to refinance your current mortgage and pay off the outstanding debt balance.If you have questions about the Home Affordable Refinancing program or if you want to take part in one of the free seminars regarding the different federal loan modification programs of the Obama administration, contact the Housing and Urban Development Office immediately. You may also talk to your mortgage lender and service provider to know if you are qualified for this type of mortgage help. And to know the full detail on the HUD’s home affordable refinancing options in your respective state, browse through the selling guide announcements for mortgage lenders, investors, and servicers in your area.