FHA Hope For Homeowners In Foreclosure Or Default Program - Questions And Answers

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What is the HOPE for Homeowners Program (H4H)?

Created by Congress, this new program, is intended to help borrowers refinance into more affordable loans who are at risk of foreclosure and default.


How can the H4H program help me?

This program may allow you to refinance your loan, with lower payments, into a new thirty-year fixed rate loan if you are having trouble making your mortgage payments.

To apply, do I have to pay anything?

There will be closing costs associated with HOPE for Homeowners loans; however, they may not be required to be paid out of pocket by the borrower. For more details, please consult a HUD-approved Housing Counselor or your lender. To find a HUD-approved Housing Counselor or FHA-approved lender, please go to fha.gov.

How long will the process take?

Processing time usually takes approximately sixty days and will vary. Please consult your lender when you apply.

To apply, what information do I need?

Based on your specific situation, your lender is in the best position to answer this question, but at a minimum you will need your current mortgage information and evidence of your assets and income.

How long is the H4H program available?

The program began on October 1, 2008 and will end on September 30, 2011.

What interest rate will I receive?

The interest rate for the new H4H loan is based on current market rates and will be provided by the lender.

I don't want another adjustable rate mortgage. Will this interest rate be adjustable or fixed?

Insured by the Federal Housing Administration (FHA), all HOPE for Homeowners loans are thirty-year FIXED RATE mortgages.

Can I apply with HUD if I contacted my lender and they are not interested in participating in this program?

HUD does not lend money directly or accept loan applications. You may apply with any FHA-approved lender who is participating in the program. You may also consult a HUD-approved housing counselor. HOPE for Homeowners is a voluntary program for both existing lenders and borrowers. However, your lender must agree to accept the proceeds of the new loan as payment in full in order to complete a HOPE for Homeowners loan. For further assistance you may wish to consult a HUD-approved counselor. For a list of participating counselors and lenders please go to fha.gov.

Questions about eligibility

Can I still apply for H4H if my lender has started foreclosure proceedings?

Yes, however, time is of the essence.

Is there an income restriction?

No, but you will need to demonstrate that you have steady and sufficient income to make the new H4H mortgage payments.

Am I still able to apply for H4H if I recently filed for bankruptcy?

Yes, borrowers in bankruptcy may participate; however, you will want to consult with the person handling your bankruptcy.

Can I still apply for H4H if my lender has already foreclosed on my home?

Depending on which stage of the foreclosure process you are in, it may be possible. For more detailed information you should talk to your lender immediately.

Can I still apply for H4H if I have a first and second mortgage on my home?

Yes, however, all your existing lenders must agree to release the liens against your home.

Can I apply for H4H if I am current on my mortgage?

Yes.

Lender related questions

Can you recommend a lender?

A list of participating lenders is located at fha.gov, however, HUD does not recommend lenders. In the section marked "At your service," please click on the link "Find a HUD approved Lender in your area."

I would like to apply but I can't reach my lender. What should I do?

You may contact any participating lender to apply. For a list of HUD-approved lenders, please go to go to the FHA website at fha.gov. In the section marked "At your service," please click on the link "Find a HUD approved Lender in your area."

What should I do if my lender is not registered and I would like to apply?

You may contact any participating lender to apply. For a list of HUD approved lenders please go to fha.gov. In the section marked "At your service," please click on the link "Find a HUD approved Lender in your area."

How do I decide if this is the right choice for me? I am not clear on what to do.

A HUD-approved Housing Counselor in your area can help you evaluate the different options that may be available to you, and help you determine your best course of action. You can locate a counselor in your area by going to the FHA website fha.gov and clicking on the link "Talk to a Housing Counselor."

How can a housing counselor help me?

Housing counselors are knowledgeable about available programs to help struggling homeowners. They can identify your options by review your specific situation and help you make an informed decision.

Will I have to pay taxes on the portion of my loan(s) my current lender(s) forgive or "write off"?

You should contact your tax advisor or the Internal Revenue Service at 1-800-TAX-1040, regarding tax-related questions.

Read More On The FHA Hope For Home Owners Program

Although all information has been written in good faith and reviewed, please email us at [email protected] to report any inaccuracies.