The Hope 4 Homeowners (H4H) program is aimed at helping homeowners that have found themselves owing more on their mortgage than their home is worth. This program can actually reduce the amount that a homeowner owes on their mortgage which leads to a lower monthly mortgage payment.

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The Hope for Homeowners program puts the homeowner into a mortgage based on their home's current value. A Hope 4 Homeowners’ loan will be 90% of the current value of the home. The balance that is forgiven on the loan does have some negative aspects. The Federal Housing Administration (FHA) and your current lender will share in any profits of the house when the homeowner sells their home. This is necessary to offset the forgiven balance. The reduced monthly mortgage payment is a result of the lower principal balance.

For Example:

Let’s say that your current mortgage balance is $400,000 and your home is now worth $250,000. This is a very common scenario for many homeowners today. The current mortgage payment is based on the old value of the home. 90% loan to value will be used to finance the new Hope to Homeowners mortgage based on the current value of the home. The new mortgage amount would be $225,000 for this example. That is a reduction of $175,000 in the principal balance of your mortgage. The new mortgage payment will be based on this new loan amount of $175,000.

What will the New Payment Be?

There are benefits beyond the principal reduction in your mortgage. The Hope 4 Homeowners’ mortgage payment will be reduced as well. Let’s say the current mortgage is $400,000 at 6% on a 30 year fixed (the benefits are even greater if you are in an adjustable rate mortgage). The current payment is $2,398. Assuming that the H4H loan has the same interest rate. The hope for homeowners program would result in a monthly payment of $1,348. That is $1,050 in monthly savings. There are obvious benefits.

There are some qualifying factors that homeowners need to understand. Now that you understand the benefits of the Hope 4 Homeowners program it is time to do a bit more research and find out if you can qualify for this program. This loan may have some negative aspects. You may give up some of the equity that your home builds when you sell your home. Many Americans can keep their homes with this program. The H4H program can and will provide some much needed hope to homeowners that are upside down on their mortgage.

This company is helping homeowners find the best way to utilize this program. Hope 2 Homeowners