U.S. Housing and Urban Development (HUD) Secretary Steve Preston says the HOPE for Homeowners (H4H) board of directors has approved changes to the program intended to help more distressed borrowers refinance into affordable, government-backed mortgages.
The changes will reduce the program costs for consumers and lenders alike, while also expanding eligibility by driving down the borrowers' monthly mortgage payments.
Modifications to H4H include increasing the loan-to-value ratio (LTV) to 96.5% for some H4H loans, simplifying the process to remove subordinate liens by permitting up-front payments to lienholders, and allowing lenders to extend mortgage terms from 30 to 40 years.
For more on the changes to H4H, please see MortgageOrb's Nov. 20 Blog View.
Source: U.S. Department Of Housing and Urban Development