I wrote a earlier this month about a Maryland CDA “Lifeline Refinance” as a way out of your adjustable rate loan, or your negative amortization loan.
There is another option — good ol’ FHA. We haven’t seen much of FHA loans in the past few years, but the loans are available and better than ever. By better, I mean that the process has been streamlined, so the beauracratic snafus that happened in the past should be a thing of the past.
Lenders are seeing a marked increase in refinances into FHA loans. If you’re already having problems making your payments, FHA loans are more forgiving on credit dings than conventional financing is.
You have nothing to lose by checking it out — just the loan that you already hate.
© 2007 Susan Pruden