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HOPE for Homeowners

HOPE for Homeowners U.S. Housing and Urban Development - HOPE for Homeowners is a program help more distressed borrowers refinance into affordable, government-back mortgages. The changes will reduce the program costs for consumers and lenders alike while also expanding eligibility by driving down the borrower's monthly mortgage payments.

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.
HOPE for Homeowners will continue to only offer affordable, government-insured fixed rate mortgages.
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.