WASHINGTON – HUD today announced that it has approved changes to the Hope for Homeowners (H4H) program aimed at increasing the number of distressed borrowers who can participate.
H4H modifications include increasing the loan-to-value ratio to 96.5% and allowing lenders to extend mortgage terms from 30 to 40 years.
The alterations are expected to reduce the program costs for consumers and lenders while also expanding eligibility by driving down the borrower's monthly mortgage payments.
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"These changes will further encourage lenders to take a hard look at this program before heading down the path to foreclosure and will provide families with another resource to refinance into a loan they can afford," FHA Commissioner Brian D. Montgomery said.
H4H is available to borrowers whose loans were originated before Jan. 1, 2008, who made a minimum of six payments on their existing first mortgage and who have not intentionally missed any mortgage payments. Holders of existing mortgage liens must waive all prepayment penalties and late payment fees.
The program began Oct. 1, 2008, and will end Sept. 30, 2011. It was authorized by the Housing and Economic Recovery Act of 2008.
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