Think You Can’t Qualify for a Mortgage Loan? Think Again. Jun 18, 2012, 1:38 pm By Emily Haleck

Think you can’t take advantage of historically low mortgage rates because you owe more than your home is worth or your income isn’t high enough? With new government-backed programs, mortgage loans are attainable even for underwater or low-income homeowners.*

Read below to learn more about programs available for purchasing or refinancing a home.

Federal Housing Authority (FHA)

FHA loans benefit those who would like to purchase a home but haven’t been able to put money away for the purchase, like recent college graduates, newlyweds, people who are still trying to complete their education, or those who live in low- to moderate-income neighborhoods.

FHA loans also allow individuals who may have been previously denied for a home loan by conventional underwriting guidelines or whose credit has been marred by bankruptcy or foreclosure to qualify for a loan.

The most popular FHA home loan is the 203(b). This fixed-rate loan often works well for first-time home buyers because it allows individuals to finance up to 96.5 percent of their home loan, which helps to keep down payments and closing costs to a minimum.

Home Affordable Refinance Program (HARP)

If you’re not behind on your mortgage payments but have been unable to get traditional refinancing because the value of your home has declined, you may be eligible to refinance through the Home Affordable Refinance Program (HARP). HARP is designed to help you get a new, more affordable, more stable mortgage. HARP refinance loans require a loan application and underwriting process. Refinance fees will apply. The program is currently available through Dec. 31, 2013.

You may be eligible for HARP if you meet all of the following criteria:

— The mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae. To determine if your loan qualifies, check Loan Lookup Tools at

— The mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.

— The mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May 2009.

— The current loan-to-value (LTV ratio) must be greater than 80%.

— The borrower must be current on the mortgage at the time of the refinance, with a good payment history in the past 12 months

To determine if you are eligible for any of the above programs, contact one of our mortgage loan officers at 801-642-3127.

*If the amount of the loan exceeds the value of the home, the interest on the portion of the loan that exceeds the value of the home is not tax deductible and you should consult a tax advisor.

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2 Responses to Think You Can’t Qualify for a Mortgage Loan? Think Again.

  1. Tracy Allred says:

    how can i get a loan for a house with my bad credit? and how much will a loan be for someone with bad credit?

    • Emily Haleck says:

      Tracy–It depends on several different factors. The best way to determine what your options are is to come in and talk to one of our mortgage loan officers so they can have a better understanding of your personal situation. There may be programs available to help. Give our mortgage team a call at 801-642-3127.

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