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 subprime mortgage market meltdown is occurring at the same time that a record number of adjustable rate mortgages with low starting teaser rates are scheduled for rate changes. Because of the low teaser rates, these mortgages are virtually guaranteed to go up regardless of recent Federal Reserve rate cuts. Adjustable rate mortgages which started with rates in the low 5% range are adjusting up to 8% or more. Subprime adjustable rate mortgages are ending up in double digits. Unprepared borrowers will surely end up as part of the default statistics we see every day.
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 loans allow borrowers to refinance even with higher ratios of debt in relationship to total income. FHA loans allow you to qualify for a mortgage even if you have experienced past credit problems just as long as there is a good explanation for the problems and the problems have been cured or a new mortgage will help cure them. FHA loans also allow a loan amount can go as high as 97% of the value of your home when 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.
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