FHA Second Lien Program

Do you have a second mortgage on your home? If your first mortgage’s servicer participates in FHA Short Refinance, you may be able to reduce or eliminate your second mortgage through FHA2LP. If the servicer of the second mortgage participates in the program, your total mortgage debt after refinancing must be no higher than 115% of your current home value.

Are you eligible for this program? You may qualify if:

• you already qualify for FHA Short Refinance
• your mortgage is dated January 1, 2009 or earlier
• you have not, in the past ten years, been convicted of a felony, larceny, theft, fraud or forgery, tax evasion or money laundering in a real estate-related transaction.

If the servicer of your first mortgage has agreed to an FHA Short Refinance, that servicer will work with the servicer of your second mortgage to reduce it or eliminate it altogether.

Talk to your mortgage servicer to find out if you’re eligible for FHA Short Refinance and FHA2LP. Program participation is at the discretion of the servicer.

To learn more about FHA Short Refinance, call the FHA National Servicing Center at (877) 622-8525, or visit online at  HUD.gov/offices/hsg/sfh/nsc/nschome.cfm

For any additional mortgage consultation, contact a HUD-approved housing counselor at (888) 995-HOPE (4673). This counseling service is free and available 24 hours, and can help you to come up with a plan that best fits your personal needs and puts you on the right track to becoming a successful homeowner.

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