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government mortgage programs


How the Government Shutdown Affects the FHA

gov shutdown

Despite the furlough of over 96% of its staff members, the U.S. Department of Housing and Urban Development stated that the Federal Housing Administration will continue to process applications for single family home loans.  This information corrected an earlier statement by the HUD which said that the plan would be to cease working on applications for these government-backed mortgages in the case of a shutdown.

The underwriting and approval process is expected to be significantly slower than usual.  Regardless, the HUD notes the importance of loan processing in the midst of a shutdown.  Just last year 45% of all mortgages used to purchase homes were from loans backed by the FHA as well as the Veteran's Administration and the U.S. Department of Agriculture.  They declare they will remain active "in order to support the health and stability of the U.S. mortgage market."

To view the article that inspired this post, click here.



Mortgage relief available

We have encountered many homeowners who are having trouble keeping up with their mortgages. Little know that help is available through the federal government.

The Home Affordable Refinance Program is available to 4 million to 5 million homeowners who have a solid payment history on an existing Fannie Mae or Freddie Mac mortgage. Ordinarily, these borrowers would be unable to refinance because their homes have lost value.

Under the Home Affordable Refinance Program, many will now be eligible to refinance their loan to take advantage of lower mortgage rates or to refinance an adjustable rate mortgage (ARM) into a fixed-rate loan.

The Home Affordable Modification Program will help another 3 million to 4 million at-risk homeowners avoid foreclosure by reducing monthly mortgage payments. Working with the banking and credit union regulators, the FHA, the VA, the USDA and the Federal Housing Finance Agency, the Treasury Department has set guidelines that are expected to become industry standards in obtaining affordable mortgage modifications.

For more information, visit