PRWire

San Diego, California April 16, 2008 — BD Nationwide Mortgage introduces new loan limits for FHA mortgage refinance and home purchase loans. The increased loan limits for FHA mortgages offer a unique opportunity for homeowners to refinance into a lower interest rate loan that is fixed with 15 or 30-year terms. The lender is excited to release the FHA refinance loan that allows cash out up to 95% loan to value. With out cash out, borrowers can complete a rate and term refinance up to 97.5%. If financing a new home, applicants can also buy a home with less than 3% down.

This unique government insured mortgage product allows homeowners to escape their adjustable rate mortgage that has been draining their savings. The legendary FHA loan was created by the HUD in 1934 to ensure fair lending and has since evolved into a powerful refinancing tool for first time homebuyers, people with bad credit scores and for good credit borrowers who recently lost the equity in their homes due to the declining home sales that caused a foreclosure epidemic. The newly raised FHA loan limits open the doors for many homeowners residing in high cost areas across the country. For example in 2007 borrowers in Los Angeles, California were restricted to $362,000 for FHA loans and in 2008 the economic stimulus package recently enacted by Congress increased the loan amounts to $729,750 in the high cost areas in California and other states. Last year, borrowers found it extremely difficult to get approved for a mortgage refinance or FHA home loans because their first and second mortgages exceeded the conforming and FHA loan limits.

Unfortunately, many of our loyal clients who run into credit problems that hindered them from refinance qualifications. FHA loans offer significant value to consumers because the interest rates are low with fixed monthly payments and mortgage insurance is now tax deductible. Since FHA promotes evaluating credit by looking at the entire picture, there are no minimum credit score requirements so many people who were recently denied financing from a traditional lender now have an opportunity to secure a good loan. Unlike most bad credit mortgages, our FHA loans do not have any pre-payment penalties so if the interest rates drop again you will be eligible for a streamline refinance that reduces the interest rates at a minimal cost.

Jeff Moran, a CFB loan specialist, said, "The fha refinance loans enable my clients to refinance into a secure thirty year fixed rate mortgage at a competitive rate and a monthly payment that they can afford. Homeowners can get access to cash at the same time they are refinancing their adjustable rate mortgage." According to Mr. Moran, "The sub-prime mortgage programs evaporated in 2007, so FHA home loans have become the home refinance loan in 2008. With home values declining nationally, many homeowners have been stuck in a high rate ARM, until HUD finally increased the loan amounts." Moran continued, "Many of my clients in California, Florida, Washington and New Jersey have been held hostage by the mortgage meltdown on Wall Street." With the new FHA home loans limits being increased between $400,000 and $729,000, thousands of homeowners finally have an opportunity to refinance into a mortgage that makes sense with their budgets.

According to mortgage executive,… To read the press release in full goto http://www.prweb.com/releases/mortgage/refinance/prweb863084.htm