Homeowners who are finding it hard to pay for their mortgage loan every month can now opt for Government mortgage assistance programs in order to stay away from foreclosure. They can now refinance their mortgage with the help of the government to keep their precious property under their names. The recession period is the reason why in 2009 the government passed a bill that can help those people falling behind their mortgage payments. Today, it is possible to refinance loan rates. In case you happen to choose adjustable mortgage rate, then you can turn into a fixed rate loan for you to payless per month. Now you have the power to modify your existing mortgage and refinance your home loan. The government also came up with the USDA loan for low income earners to prevent others from falling behind their payment upon getting a new home. In this article, you will learn a lot including what is a USDA loan & the USDA loan process involved. Mortgage Modification If you cannot pay on time for your mortgage loan, then you need to talk to your lender to come up with better terms. They can help you to make modifications on your current loan to make it more favorable on your part. Both parties can benefit from this agreement as homeowners can keep their home and lenders to avoid foreclosure process. The most common modification is the change in interest rate to a much lower cost. This is only done for a certain period of time, but it is not a long term solution. In this agreement, you can pay more of the principal amount. Once you pay on time, then you are eligible for reduction of your principal balance. Mortgage Refinance This assistance is for homeowners who have lost huge value of their property. Mortgage loan holder with no equity and consistent in paying their loan is qualified for refinance loans. One of the main criteria is that the loan must be owned by Fannie Mae or Freddie Mac. What is a USDA LOAN? USDA home loan is a development mortgage program of the US agriculture department that enables people to buy a new home or an existing home for as long as the home is within the USDA map. The cost of the property loan will be 100% covered by the loan. What is so essential about it is that the closing cost of the mortgage can also be covered by the USDA loan program as long as they fall in the value of the home according to the latest appraisal value. As soon as the USDA Loan Process is over and the loan is granted to you, you will not be required to get private mortgage insurance. This is because there is no way you cannot pay for the loan since it is payable within 30 years and the interest rate is also fixed. Resource box USDA Loan Process is easier if you are legible for the loan. What is a USDA Loan is a common question that was answered in this article.
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