The federal government’s latest mortgage-loan program is set to take effect in December, and Wells Fargo is preparing to put hundreds of thousands of borrowers through a new loan application process.
The process, which will be overseen by the Federal Housing Administration, involves filling out a series of online forms.
If you have any questions about your eligibility, you can call 1-800-744-5255 or go to www.fHA.gov/fhay.
The new application process, however, isn’t the only changes to be coming.
Wells Fargo said it will begin offering a new mortgage insurance policy that will provide higher protection against default.
The company said it expects to roll out the new policy next month.
Wells is the first bank to offer mortgage insurance through the Federal Home Loans program, which it said it is expanding to other banks.
The federal agency is offering a $5,000 bonus to qualifying borrowers who sign up through the FHA website and a $100,000 federal loan guarantee.
The FHA also offers a home equity line of credit that can help borrowers pay down their mortgage debt.
The Federal Housing Finance Agency also announced it is extending a special mortgage insurance program to homeowners who qualify.
Interest rates are expected to go up for the FHFA mortgage insurance products.