By taking full advantage of the new authority provided under the Emergency Economic Stabilization Act (EESA) of 2008, HOPE for Homeowners will provide additional mortgage assistance to struggling homeowners.
Modifications to HOPE for Homeowners include:
- Increasing the loan to value ratio (LTV) to 96.5 percent for some H4H loans;
- Simplifying the process to remove subordinate liens by permitting upfront payments to lienholders; and
- Allowing lenders to extend mortgage terms from 30 to 40 years.
Further, this program will maintain FHA's long-standing requirement that new loans be based on a family's long-term ability to repay the mortgage. Only owner-occupants are eligible for FHA-insured mortgages.