FEDERAL HOUSING FINANCE REGULATORY REFORM ACT OF 2008
The "Hope for Homeowners Act 0f 2008" allows those who qualify to cancel their old mortgage loan and replace it with a 30 year fixed rate loan for up to 90% of the home's value. The key requirements are:
Only owners who live in their home are eligible.
Homeowners must have a mortgage debt to income ratio greater than 31% as of March 1, 2008
The new loan is the lesser of the amount the borrower can afford to repay, or 90% of the value of the home.
Participation by the lender is voluntary; the current mortgage holder must agree to participate.
The program is scheduled to start October 1, 2008, and run through September, 2011.
