Borrowers could use interest-free partial claim funds to repay shortfalls on an FHA mortgage to bring it current and then receive a reduced monthly payment for three to five years.
FHA Commissioner Julia Gordon said FHA plans to “very soon” add a proposal to its drafting table on options that mortgage servicers can use to help borrowers reduce their monthly payments to keep them in their homes.
Under the modified policy, FHA decreased the minimum loan balance threshold at which a mortgagee can submit the assignment request for a home equity conversion mortgage.
There were roughly half a million fewer new listings in the first four months of this year than in the first four months of 2019, a year before the pandemic.
FHA is taking feedback through April 27 on a draft mortgagee letter proposing the use of rental income from accessory dwelling units to calculate borrowers’ eligibility for a home loan.
FHA said the amount of rental income from the accessory dwelling unit used to determine income may not exceed 30% of the total income used to qualify the borrower.
FHA is taking comments through April 27 on a draft mortgagee letter meant to spur more affordable mortgage financing for properties with accessory dwelling units.