GA Bad Credit Refinance With FHA
You cannot turn on the news without seeing a new headline trumpeting the meltdown of the mortgage industry. Obtaining a conventional mortgage is becoming more difficult by the minute. Qualification guidelines are arguably tighter than they have ever been.
This meltdown is occurring at the same time a record number of adjustable rate mortgages are set to begin their rate adjustments. Because these ARMs usually had initial teaser rates that were artificially low, if you have an adjustable rate mortgage there is a near 100% chance that your rate will be going up. Most of the time, this first rate adjustment will be several percentage points. It is not uncommon right now for a mortgage that has had an interest rate in the low 5’s to be adjusting up to the 8 or 8.5 percent range! If you have a subprime loan, this increase may be from 6.5 percent to 9.5 percent or more! Borrowers who are unprepared for this will have their mortgage end up as part of the delinquency rate statistics talked about on the evening news.
If you do not fit into the new tighter conventional mortgage guidelines because of credit problems or because your home’s value has not risen as quickly as you planned, there may be a very good option if your loan amount is below $346,250 in more populated Georgia counties and $271,050 in more rural Georgia counties. That solution is to use an FHA loan.
FHA loan guidelines allow refinancing with higher debt ratios. They allow you to qualify for a new mortgage even with past credit problems so long as you can provide a good explanation and you have solved the problem, or if a new mortgage will solve the problem. FHA loans can also take up as much as 97% of the value of your home if necessary.
Don’t surrender if you currently have an adjustable rate mortgage and your payment is scheduled to go up. Call a local FHA lender today to explore your options to solve this problem.
