How housing rescue bill can help you I
The new housing rescue bill has $300 billion for the troubled homeowners. Do you qualify to get the benefits?The housing bill, which was passed recently, is enacted to help troubled homeowner and the mortgage giants Fannie Mae and Freddie Mac. The law will be put in action from October 1. The at risk homeowners now, will be able to refinance their old mortgage loans with the help of a low-cost fixed-rate loans which will be insured by the the Federal Housing Administration (FHA).
Though the Congressional Budget Office estimation says that 400,000 borrowers with $68 billion in loans will be benefited by this program, but the bill allows only 1- 2 million borrowers.
So are you in these 1-2 million?
Who’s eligible?
To be eligible,
1. You should live in your own home
2. Your loan should have been issued in between January 2005 and June 2007
3. You should be paying at least 31% of your gross monthly income on mortgage debt
4. You are eligible for the new mortgage from FHA irrespective of whether you are in default already or up to date on your existing mortgage. You will have to prove that you
- will not be able to pay the existing mortgage
- You are not deliberating defaulting in paying the existing mortgage so as to get lower payments.
5. Before you get FHA help, you have to retire other debt such as home equity loan or line of credit on your home.
You will not be able to take another mortgage for 5 years, unless it I for necessary upkeep of the home.
