FREE CREDIT SCORE

Do you know what's on
your credit report?

- SEE IT NOW -

FHA Loan Articles

News, updates, and explanations to keep you informed.

Understanding the Obama Mortgage Questionnaire

Those in Fannie Mae/Freddie Mac home loans or conventional mortgages who want to take advantage of the Obama mortgage refinancing option under the Home Affordable program are asked a few simple questions to determine eligibility.

If you’ve visited the official site for the Obama mortgage or a lender’s site, you will be asked these four questions in the initial screening process.

1. Do you own a one- to-four unit home?

2. Do you have a mortgage guaranteed by Fannie Mae or Freddie Mac?

3. Are you current on your home loan payments?

4. Is the amount of money you owe on your loan about the same or less than the current value of your home?

These questions are simple for more experience borrowers, but if you are new to loans, conventional mortgages and refinancing some additional explanation may be necessary.

Question #1 is the easiest to explain. Under the terms of the Obama mortgage refinancing option, those who own single family homes may be eligible, but if you own property with more than one unit you may also be eligible—as long as you reside on the property yourself.

Question #2 is often confusing—just what are Fannie Mae and Freddie Mac? Fannie Mae and Freddie Mac are government supported enterprises. They are private agencies which are supported by the government. Their status allows a home buyer to get a home loan at a lower interest rate. Fannie Mae and Freddie Mac loans have a lower cost than other home loans. If you aren’t sure whether your loan is a Fannie Mae or Freddie Mac loan, call your loan officer to find out.

Question #3 is simple enough—but there is confusion over what is considered “current”. Under the terms of the Obama mortgage, being current on your Fannie/Freddie home loan or conventional loan doesn’t just mean you’ve made all your payments in the last 12 months. It also means your payments were not more than 30 days late at any time in the last 12 months. That’s an important distinction to make. If you were more than 30 days late on a mortgage payment or conventional loan in the last 12 months, you have two choices. You may be able to wait until 12 months have passed with on time payments—or you can consider the loan modification version of the Obama mortgage homeowner relief program. If you choose to wait, know that the Home Affordable homeowner bailout program is scheduled to end June 10, 2010.

Question #4 refers to the Obama mortgage requirement that you owe less than the current value of your home. Some borrowers get confused over this point. If your payments have gone up significantly as a result of a variable rate mortgage, you may be paying far more per month than you would with a fixed interest rate. The amount of money paid would—if that higher interest rate did not change over the lifetime of the loan--equal more than the home is worth. But Question #4 refers to the total amount of your remaining loan payments compared to the actual market value of the home. If the amounts are equal or the amount you owe is less than the market value, you can safely answer “yes” to question #4.

FHA NEWS and RELATED ARTICLES

:: What You Should Know About FHA Loan Origination Fees

:: The FHA Short Refinance Option—Help For Non-FHA Borrowers

:: What Does the FHA Reform Act Mean for New Borrowers?

:: FHA Policy Changes You Should Know About

:: Alimony, Child Support and Separate Maintenance--Does it Count as Income?

:: Can I Still Get a First Time Homebuyer's Tax Credit?

:: 2010 BAH Rate Protection

:: Help for Struggling Home Owners from FHA and Homeowner Bailout Plan

:: Up Front Mortgage Insurance Premium Changes for FHA Loans

:: What is the FHA Hardest-Hit Program?

:: Is the Obama Home Affordable Program Open to Those with VA Loans?

:: FBI Issues Scam Warning for Home Equity Conversion Loans

:: How are FHA Refunds Determined?

:: FHA Issues Sanctions Against 120 Lenders

:: FHA Reverse Mortgages: Getting Paid and Paying Back

:: FHA Updates Rules on 2009 Tax Credit and FHA Loan Down Payments

:: FHA Reverse Mortgage Terms and Fees

:: Tax Break Money and FHA Loan Downpayments

:: When Do I Have To Pay Back My FHA Reverse Mortgage?

:: What is an FHA Reverse Mortgage?

:: FHA Home Loans Growing In Spite of Housing Slump

:: What Is RESPA and How Does It Affect My FHA Loan?

:: Does the FHA Owe You a Refund?

:: FHA Home Loans and Property Taxes

:: What is an FHA Energy Efficient Mortgage?

:: The FHA and the Government Crackdown on Loan Fraud

:: What is the Second Lien Program?

:: Prepaying FHA Loans

:: FHA Loan Myths -- The Self-employed and FHA Loan Qualification

:: What is a 'Non-Purchasing Spouse?'

:: Could Down Payment Assistance Programs Make a Comeback?

:: The 2009 First-Time Homebuyer's Tax Credit

:: $8,000 Worth of Great News for First-Time FHA Loan Homebuyers

:: The Obama Mortgage After Five Years of Loan Modification

:: Understanding the Obama Mortgage Questionnaire

:: Mortgage Insurance and the Obama Mortgage

:: What Happens Once I am Approved for Loan Modification?

:: Should I Pay a Credit Counselor to Get Help With An Obama Mortgage?

:: Will the Obama Mortgage Lower My Payments?

:: What You Should Know About Obama Loan Modification

:: FHA Cash-Out Refinancing Changes as of April 2009

:: FHA Streamline Loan Defined

:: Cash Back, Closing Costs and FHA Streamline Loans

:: FHA Streamline Loan Requirements

:: How to Prepare for FHA Streamline Loans

:: FHA Secure Refinancing Cancelled

:: Should I Consider an FHA Refinance Loan?

:: FHA Refinance Questions You Should Be Ready To Answer

:: What Should I Know About the Terms for FHA Refinancing?

:: Credit Rating, Missed Payments, and FHA Refinance Loans

:: Why Should I Consider an FHA Home Purchase Loan?

:: FHA Loans and Your Rights

:: Can I Make an FHA Home Purchase for a "Fixer-Upper"?

Qualify for an FHA Loan

FHA Mortgage Rates

CALL FOR FHA RATES

(888) 380-0077

Speak to a lender now.

We will match calls to our toll free number with our network of preferred FHA lenders.

Sites and Offers of Interest

Free FHA Limits Calculator

Display current FHA loan limits for states and counties on your real estate, mortgage, or community website.

Get: FHA Limits Widget

FEATURED SITES:

Helping you make the best financial choices, build wealth, and save money during and after your military service.

-- Military Insurance
-- Military Pay
-- GI Bill Education
-- Military Finance

Offering VA loan products that meet the home financing needs of active duty military and veterans across the country.

-- VA Loan Limits
-- VA Loan Refinance
-- VA Loan Guidelines

Remember, the FHA does not make home loans. They insure the FHA loans that we can assist you in getting. FHA.com is a privately owned website that provides information about FHA guaranteed home loans, and is not associated with the federal government or HUD / FHA.

FHA LOAN TYPES:

-- FHA Refinance
-- FHA Home Loan
-- FHA Secure
-- FHA Reverse
-- FHA Loan (fixed rate)

SPECIAL FHA TOPICS:

-- FHA Down Payments
-- FHA in Your City
-- Obama Mortgage
-- HOPE Act
-- FHA Mortgage Tips
-- FHA Loan Prequalify
-- Other Loan Types
-- FHA Loan Questions

FHA Foreclosed Homes

SEARCH FOR FREE!

Search by State

- or -

Enter Zip Code

- A Military Hub Site -

Military guidelines, regulations, and benefits are introduced each year for everything from Military Pay Charts to your VA Loan benefits. We can help you stay informed.

> See also: 2009 Military