Fha advice please!!!

[shay01]

Ok so BOA offered me a crappy MOD yesterday and said there is nothing else they can do this is the best. They said they have to follow the FHA guidelines and they are doing all FHA allows. My mortgage is 1911 and they offered to lower it to 1773. That really doesnt help me.... My interest rate is 6.5 they said would cut it to 5.375 and this is the best offer they can give. I am almost 7 months behind and they will work all that back in the loan. I even told them it really doesnt hlep my situation and they said this is the best they can do with FHA and they are suprised they were even able to drop my interest rate. I am so confused I dont know what to do i really cant afford it but i dont want to lose the house either. Any advice?? Does anyone know how true it is about this being the best rate i can get with FHA??? They of course said i dont qualify for the HAMP so this would be the best in house MOD i can get.

[dan m]

find the FHA guidelines and make sure.
HUD's National Servicing Center at 1-888-297-8685
http://www.hud.gov/offices/adm/hudcl...es/09-23ml.doc
http://www.hud.gov/offices/adm/hudcl...-23mlatach.doc
Making Home Affordable - HUD Secretary Donovan Announces New FHA-Making Home Affordable Loan Modification Guidelines

[phones772]

SHAY01 they offered me the same thing last week 5.3 with adding back 25,000. to my loan and they basically told me it would be much more than my current payment which is BS. My interest now is 6%, if they had to add 25,000 to the back of my loan with a 5.3% it would have been about a 150.00 less for me a month. They basically denied me. I was wondering if that their in-house mod or is it the MHA modification guidelines they are using. I aslo have a FHA loan. Please let me know any new outcomes.

[shay01]

Originally Posted by phones772

SHAY01 they offered me the same thing last week 5.3 with adding back 25,000. to my loan and they basically told me it would be much more than my current payment which is BS. My interest now is 6%, if they had to add 25,000 to the back of my loan with a 5.3% it would have been about a 150.00 less for me a month. They basically denied me. I was wondering if that their in-house mod or is it the MHA modification guidelines they are using. I aslo have a FHA loan. Please let me know any new outcomes.

They told me it was FHA guidelines and that they could not offer me anything lower. I mean the payment went down 150 but dang that really doesnt help me. I am almost 7 months behind so i guess I am almost 14,000 behind. I just dont know if i should accept or is there anyway I could get something better. Dont know if i should risk losing the house although the 150 doesnt help me and i will be back in the same situation.
So what are you goind to do?? Accept??

[aubie37]

Originally Posted by shay01

Ok so BOA offered me a crappy MOD yesterday and said there is nothing else they can do this is the best. They said they have to follow the FHA guidelines and they are doing all FHA allows. My mortgage is 1911 and they offered to lower it to 1773. That really doesnt help me.... My interest rate is 6.5 they said would cut it to 5.375 and this is the best offer they can give. I am almost 7 months behind and they will work all that back in the loan. I even told them it really doesnt hlep my situation and they said this is the best they can do with FHA and they are suprised they were even able to drop my interest rate. I am so confused I dont know what to do i really cant afford it but i dont want to lose the house either. Any advice?? Does anyone know how true it is about this being the best rate i can get with FHA??? They of course said i dont qualify for the HAMP so this would be the best in house MOD i can get.

Shay,

I just got modified on an FHA loan from 6.5% down to 5%. The other programs for non government loans can go as low as 2% but that is not a guarantee. The 2% is based on what it takes to get someone down to allowed "thresholds" for monthly payment on the first mortgage. Also, with many of those 2% start payments the terms get extended out and increase up to or past a 5% rate. Not everyone has gotten a 2% fixed for the life of their loan.

In my case they worked my payment down by 10% and roughly $109 less per month. However, this "fits" into guidelines which indicate 31% of gross income for new total payment. This new payment put me just under that slightly as my income fluctuates (commission only primary basically) and I earn about $550 or so a month on my part-time job. If the new "proposal" for you is at 31% of your gross income per month, including the mi, taxes, and insurance, then it fits guidelines. I have not seen anyone on this forum be offered less than a 4.875% for an FHA loan so far.

[sahm2two]

Originally Posted by shay01

Ok so BOA offered me a crappy MOD yesterday and said there is nothing else they can do this is the best. They said they have to follow the FHA guidelines and they are doing all FHA allows. My mortgage is 1911 and they offered to lower it to 1773. That really doesnt help me.... My interest rate is 6.5 they said would cut it to 5.375 and this is the best offer they can give. I am almost 7 months behind and they will work all that back in the loan. I even told them it really doesnt hlep my situation and they said this is the best they can do with FHA and they are suprised they were even able to drop my interest rate. I am so confused I dont know what to do i really cant afford it but i dont want to lose the house either. Any advice?? Does anyone know how true it is about this being the best rate i can get with FHA??? They of course said i dont qualify for the HAMP so this would be the best in house MOD i can get.

I don't know much about FHA but is the new "adjusted" payment 31% of your gross income?

[shay01]

Originally Posted by aubie37

Shay,

I just got modified on an FHA loan from 6.5% down to 5%. The other programs for non government loans can go as low as 2% but that is not a guarantee. The 2% is based on what it takes to get someone down to allowed "thresholds" for monthly payment on the first mortgage. Also, with many of those 2% start payments the terms get extended out and increase up to or past a 5% rate. Not everyone has gotten a 2% fixed for the life of their loan.

In my case they worked my payment down by 10% and roughly $109 less per month. However, this "fits" into guidelines which indicate 31% of gross income for new total payment. This new payment put me just under that slightly as my income fluctuates (commission only primary basically) and I earn about $550 or so a month on my part-time job. If the new "proposal" for you is at 31% of your gross income per month, including the mi, taxes, and insurance, then it fits guidelines. I have not seen anyone on this forum be offered less than a 4.875% for an FHA loan so far.

I am not sure but my payment before was 1911 the new payment would be 1773 they say. So you say you have not seen anyone get below the 4.875 with FHA. SO basically you think i should take it?? I dont know really any other option I have. they say i dont qualify for FHA Hamp and this is the best they can do.

[aubie37]

Originally Posted by shay01

I am not sure but my payment before was 1911 the new payment would be 1773 they say. So you say you have not seen anyone get below the 4.875 with FHA. SO basically you think i should take it?? I dont know really any other option I have. they say i dont qualify for FHA Hamp and this is the best they can do.

What I indicated is that if your gross income (before taxes) is "X" then multiply that amount 31%. Take the number obtained from that calculation and see how close it is to the proposed payment of $1773 per month. If you are coming out with a debt to income higher than that with that new proposed payment then pursue to continue. With all guidelines they try to get the payments around 31% of gross income per month.

Example from your numbers:

Using 1773 (payment) / 31% = roughly $5700 gross income.

Anyone with a gross debt to income for the mortgage payment below the 31% would likely have to have an additional and exceptional burden/hardship as even the FHA-HAMP guidelines indicate a 31% payment threshold.

The article below shows the information from HUD about FHA-HAMP
Assistant Secretary for Housing-Federal Housing Commisioners

[shay01]

Originally Posted by aubie37

What I indicated is that if your gross income (before taxes) is "X" then multiply that amount 31%. Take the number obtained from that calculation and see how close it is to the proposed payment of $1773 per month. If you are coming out with a debt to income higher than that with that new proposed payment then pursue to continue. With all guidelines they try to get the payments around 31% of gross income per month.

Example from your numbers:

Using 1773 (payment) / 31% = roughly $5700 gross income.

Anyone with a gross debt to income for the mortgage payment below the 31% would likely have to have an additional and exceptional burden/hardship as even the FHA-HAMP guidelines indicate a 31% payment threshold.

The article below shows the information from HUD about FHA-HAMP
Assistant Secretary for Housing-Federal Housing Commisioners

gross only about 3300 month

[aubie37]

Originally Posted by shay01

gross only about 3300 month

Shay,

Wow, severe. I understand as I have dropped about 1700 a month from what I used to make without the second job and am about 1200 more or less lower than what I used to make now working both jobs.

1773/3300=53.72% of debt to income for just the house.