HOPE for Homeowners
The HOPE for Homeowners (H4H) program has been replaced by the Making Home Affordable Refinance Program.
The HOPE for Homeowners program, effective October 1, 2008 through September 30, 2011, was intended to assist those at risk of default and foreclosure by refinancing a homeowner’s current loan into a new 30-year or 40-year fixed rate loan with lower payments.
The HOPE for Homeowners loan limits cap at $550,400 and generally may not exceed 90% of the current appraised value of the home, while some loans are permitted to have a 96.5% loan-to-value ratio. The new home loan will include closing costs and an upfront insurance premium of 3%. An annual mortgage insurance premium is also required at 1.5% of the outstanding loan balance. This program is available to owner-occupants without additional properties who received their home loan before January 1, 2008 with debt-to-income ratios greater than 31% as of March 1, 2008.
Homeowners may contact their existing lender or a new lender directly to discuss if they qualify for the HOPE for Homeowners program. Homeowners may also have their foreclosure prevention counselor work on their behalf with their lender to reach a solution for avoiding foreclosure through this program.
Benefits of the HOPE for Homeowners (H4H) Program
- Home retention
- An affordable mortgage based on the current appraised value of the home
- 10 percent home equity
H4H Program Costs and Restrictions
- Mortgage insurance premiums of 3% upfront and 1.5% annually
- No new junior liens (home equity lines or second mortgages) against the property unless they are directly related to property maintenance
- Equity is shared on a sliding scale with the Federal Government keeping 100% if home is sold or refinanced in the first year. The Government’s share declines 10% each year over five years and levels off at 50% for the life of the loan.
H4H Program Video Presentation
The features, benefits and eligibility requirements of the Hope for Homeowners program is covered in this 15-minute narrated video presentation (in Windows Media format). The video is intended for foreclosure counselors and professionals, but it might help you understand the details a bit better.
More Information
- Making Home Affordable – Official Government Website
- Loan Modifications
- Short Sales
- Other Solutions to Preventing Foreclosure
