Housing Scorecard shows gains in market

9/19/2013 1:58:25 PM

Click Image to view larger

The August edition of the Obama administration's Housing Scorecard was recently released by the U.S. Department of Housing & Urban Development and the U.S. Department of the Treasury.

"As indicated in the August housing scorecard, the Administration continues to work to stabilize the housing market and help responsible homeowners get back on their feet," said HUD Deputy Assistant Secretary for Economic Affairs Kurt Usowski. "With the number of underwater homeowners decreasing by more than 40 percent, it is clear that we are moving in the right direction. As we regain stability in our housing markets, it is important to remember that we still have a long way to go in making sure that our housing finance system is strong for future generations."

Much of the report focused on increasing home prices and their positive effect on underwater borrowers. Citing the S&P/Case-Shiller 20-City Home Price Index, the report showed that home prices increased 12.1 percent as of June on a year-over-year basis. This has helped underwater homeowners gain equity in their properties, with the number of underwater homeowners decreasing 42 percent from the beginning of 2012.

The report also drew attention to the success of the Making Home Affordable Program, which includes modification and refinancing programs.

"The standards set by the Making Home Affordable Program have changed the mortgage servicing industry, as have our quarterly assessments of servicer performance," said Treasury Assistant Secretary for Financial Stability Tim Massad. "While there has been significant progress, there is still more improvement needed in servicer behavior. And while the housing market has recovered substantially, there are still homeowners struggling to avoid foreclosure and it is vital that we continue to try to help them."

Data shows that more than 1.7 million homeowner assistance actions have taken place through the Making Home Affordable Program, including more than 1.2 million permanent modifications. These modifications save homeowners an average of $547 on their monthly payments, resulting in savings of $21.6 billion in monthly mortgage payments for all involved.

As far as refinances, HARP has helped millions of homeowners, as well. However, there are more options for servicemembers with VA home loans.

VA provides refinancing options
In addition to the benefits of a VA purchase loan and a standard VA refinance loan, eligible servicemembers can also take advantage of a VA cash-out refinance loan. This allows homeowners to access the equity in their properties in order to do things like pay off debt, pay for college tuition or make home improvements.

With home equity on the rise, it would be wise for interested homeowners to explore their options when it comes to a VA cash-out refinance loan.

Contact The Federal Savings Bank, a veteran owned bank, to explore VA home loan eligibility.