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Bad Credit Mortgages: FHA Refinance In Georgia |
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by BrendaPuckett
One cannot watch television for 5 minutes or read the newspaper without seeing more news about the meltdown of the financial markets and the mortgage industry. Conventional mortgage guidelines may be stricter than they have ever been. Qualifying for a conventional mortgage gets tougher every day.
This financial meltdown is happening in the middle of a time period when record numbers of adjustable rate mortgages are scheduled for rate increases. Adjustable rate mortgages generally started out with low teaser rates which means that no matter what rates the Federal Reserve cuts, these mortgage rates are going up. This initial adjustment is normally less limited than later adjustments. It is fairly common now to see mortgages which had starting rates in the low 5 percent range jumping up 8, 8.5 or 9! Subprime loan rates can be moving even higher. Borrowers who are not ready for these changes will end up as part of those foreclosure statistics on the nightly news.
If you can't qualify for the today's more stringent conventional mortgage guidelines as a result of credit problems or too little of an increase in your home's value, there may still be a great option if your loan amount is below $346,250 in more populated Georgia counties and $271,050 in rural Georgia counties. You may still be able to qualify for 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.
If you live in Georgia and your current mortgage is an adjustable rate mortgage with an imminent rate increase, don't give up. Contact a Georgia HUD approved FHA lender and find out if the FHA option is available in your situation. You will certainly be glad you did.
About the Author: For more information on Georgia FHA loans and whether you can obtain an FHA refinance, contact Brenda Puckett with Home America Mortgage or visit her website for more no obligation complimentary information. |
