Showing posts with label FHA Housing Rescue Bill. Show all posts
Showing posts with label FHA Housing Rescue Bill. Show all posts

Thursday, October 9, 2008

FHA Housing Rescue Bill

Just heard last week on the new rescue bill by FHA. There is a provision that FHA will rework your current mortgage to reduce your monthly payment. What they are actually doing, is replacing your old mortgage with a new one. FHA is basing the new mortgage amount on 90% of the current house value. The catch is, when you do sell down the road, 50% of your profits goes directly back to FHA to fund their program. If you currently have an ARM- I say start shopping for a conventional loan with a better rate.