NEW YORK (CNNMoney.com) -- Struggling to pay your FHA mortgage? Now you no longer have to be late with your payments to get help.
On Friday, the Federal Housing Administration announced that it will assist borrowers before they become delinquent. All you need do is prove your problems were caused by a reduction of income from a job loss, fewer paid hours, slashed wages or a decline in self-employed business earnings.
You may also qualify because of a change in household circumstances, such as a death or disability.
"The FHA has always required lenders to establish early contact with delinquent borrowers to discuss the reason for missing a payment and to evaluate reinstatement options," FHA Commissioner David Stevens said in a prepared statement. "Now servicers will have additional options for those borrowers who seek help before they go delinquent, which increases the likelihood that the borrower will be able to retain their home."
The workouts available include forbearance, in which lenders agree to postpone or reduce payments for a specified period. This does not actually forgive the payments, they are just added to balance later in the mortgage term.
In more severe cases, borrowers may qualify for permanent payment reductions. This may be done by increasing the length of the loan, reducing the interest rate or even forgiving principal -- or a combination of any of the three.
|Overnight Avg Rate||Latest||Change||Last Week|
|30 yr fixed||3.39%||3.42%|
|15 yr fixed||2.66%||2.67%|
|30 yr refi||3.42%||3.47%|
|15 yr refi||2.69%||2.71%|
Today's featured rates:
Carrier workers don't believe Donald Trump can keep their jobs in America. More
The U.K. is preparing to split from the European Union, which means about $1.3 trillion in trading relationships will have to be reset. More
Apple is more focused on social responsibility than ever before, but it's also becoming more bureaucratic and potentially losing its innovative streak. More
In 1998, Ntsiki Biyela won a scholarship to study wine making. Now she's about to launch her own brand. More
Just 15 states are paying enough into their public pension funds to both pay promised benefits to retirees and pay down pension debt. More