Released: October 02, 2008

FHA program for struggling homeowners

Source: Dina ElBoghdady, Washington Post (Free Registration)

The Bush administration rolled out a program yesterday that aims to help thousands of struggling borrowers refinance into more affordable, government-backed mortgages and thus provide some relief for the foreclosure crisis that’s contributed to crippling the financial markets.

The Federal Housing Administration program, which would insure up to $300 billion in mortgages, was part of a broader housing rescue bill enacted this summer. By law, its details could not be released until yesterday. It will take at least a few days for lenders to get it up and running—if they choose to participate.

Borrowers who took out a mortgage on or before Jan. 1 can apply if they have made at least six payments on their existing loan and they do not own a second home. If their lender goes along with the deal, they can refinance into a 30-year, fixed-rate loan. 

Read Full Article: FHA program for struggling homeowners