New THDA Refinance Program October 1, 2008
Posted on | September 8, 2008 | No Comments
Starting on October 1, 2008, the Tennessee Housing Development Agency will release a newly created program designed to help people statewide who have adjustable-rate mortgages that may be in jeopardy of foreclosure once the loan adjusts. This new program, referred to as Great Save, will allow those who qualify to get a low interest, 5.8%, 30 year fixed mortgage through participating lenders.
THDA traditionally does not provide for refinance loans. However, because of the changing market, Congress passed the Housing and Economic Recovery Act this year and has made this possible. There are a couple of things you need to know and the most important is that this refinance loan is not for people who have let their credit fall due to getting behind on their house payments. It is for people who are making their payments but feel they might get behind once their loans reset.
If you think preventative then you are on the right track. Most people don’t try to get a refinance until they have already missed several house payments and by this time it is too late. This is a great loan as long as you take action BEFORE you get behind.
This loan is no different than other THDA loans that must meet other criteria as well in Davidson and many surrounding Counties. The loans cap is $226,100 and there are income restrictions; $61,600 for 1 or 2 person households and $70,840 for 3 or more people; you can only get these loans through approved lenders that sell the loans to THDA; loans that are larger than 78%LTV (loan to value) must be insured by FHA, VA, Fannie Mae or Freddie Mac and; you must show hardship in one of five areas including a high interest rate and reduction of household income.
You can find out more by contacting THDA or email Taylor at thill@newsouthfederal.com
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