Upside down has become a new buzz word for many Americans that hold mortgages.  If you find yourself in this position there is a solution. You can reduce the principal balance of your mortgage with hope 4 home owners. Your monthly payments will also be reduced.

It is possible to obtain a new loan with a current appraisal.  The upside down balance on your current mortgage will be forgiven.  90% of the current value of your home will be the amount of the new mortgage.

This will result in a major reduction in your monthly payments.  You may see your payments cut in half.  This will help many homeowners stay in their home.

The new loan will be an FHA loan.  It will be insured by the Federal Housing Administration.

I’m sure you can imagine how many home owners will be helped with this program.  If you are upside down on your home, take the time to research this program.

You will have to document your income.  Most of the standard mortgage guidelines will apply.  The reduction of your balance will be advantageous when calculating your new payment.

July 30th 2008 the H4H was passed.  This is only available on owner occupied homes.  It is set to expire on September 30th, 2011.

This program does have guidelines.  The FHA has sent limits on the loan amounts as well.

This is a great program for home owners that have been having trouble with their mortgage. The situation that you are in can be improved dramatically.

There is an equity sharing element to the hope to homeowners program.  Moving forward the FHA will also share in the profits if you build equity in your home.  Some of your equity will be returned to the original lender when you sell your home. The scale changes and is based on how much time has passed.  The FHA will also share in your home’s equity moving forward.

Find out more on  hope 4 home owners.