What are the mortgage assistance programs available to you?

The worst recession ever since the Great Depression of 1930s, has led the Federal Government to pass several spending bills in the year 2010. All these bills were intended to reduce the case of foreclosures. You, as a homeowner, should be well aware of the existing government mortgage assistance programs. If you are a troubled homeowner, NMHC (National Multi Housing Council) is there to assist you through its wide network of foreclosure prevention specialists. The professional mortgage help assists you tide over the homeownership related problems.



The aim of the government assistance programs is to achieve two goals which are listed below.



1. The mortgage assistance programs help you avoid foreclosure for the present as well as for the future years.



2. This helps you refinance your mortgage so that you actually make less monthly payments with the help of fixed rate mortgage (FRM).



Whatsoever, the qualified homeowners are permitted to take fixed rate government-backed mortgage relief loans. Here is the list of available mortgage assistance programs.



For homeowners who still have equity



Under the traditional FHA loan program, you can obtain a fixed rate loan up to the maximum 97% of the current market value of your home. Through new Home Affordable Refinance Program (HARP), homeowners with conforming loans can now refinance to the maximum limit of 105% of the total market value of your home. The government mortgage assistance program helps you save thousands of dollars on your mortgage payments over the next few years and you can have peace of mind knowing that your home is refinanced with a low fixed rate.



For homeowners with no equity



For the homeowners with no equity, here is the list of options available.



(i) FHA streamline refinance



If you are facing troubles with your existing mortgage loan and currently have an FHA loan, then you can easily go for refinance option. However, to opt for this, you need to make regular payments on your mortgage.



(ii) Loan modification program



If you are faced with unmanageable monthly payments on your mortgage loans, you can choose loan modification as an alternative option. Through loan modification program, your monthly payment is reduced by increasing the loan term. This helps in reducing the cases of foreclosure.



(iii) FHA short finance



This is a variation of the loan modification program. In this program, the principal amount is reduced. But, it depends upon the discretion of the lender.



Various mortgage assistance programs assist you tide over the home ownership related troubles. You need to choose the program which suits your requirements well.