GA Bad Credit Mortgages: FHA Refinance During The Mortgage Crisis

By Brenda Puckett in Mortgages on April 11th, 2008

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by Brenda Puckett

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 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 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 loans allow you to refinance with higher ratios of debt in relationship to your total income. FHA loans allow you to get a mortgage even with credit problems as long as you have a good explanation and the problems have been solved or the new mortgage will help solve them. FHA loans also allow a loan amount that is as high as 97% of the value of your home if necessary.

Don’t just give up if you currently have an adjustable rate mortgage and you know the payment is about to go up. Call a HUD approved FHA lender to find out if this very good option is open in your situation. You may be very glad you did.

About the Author:

To find out more details on Georgia FHA loans and whether you can obtain an FHA refinance, get in touch with Brenda Puckett with Home America Mortgage or visit her website for more no obligation complimentary details.