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Are you facing foreclosure? Did you know that an estimated 240,000 borrowers with adjustable rate mortgages (ARMs) can avoid foreclosure FHA mortgage refinancing using the new FHASecure plan?
"Many hard-working American families who were able to make their mortgage payments under the initial teaser terms of the exotic loan are now struggling to make ends meet because their rates have doubled or tripled," said HUD Secretary Alphonso Jackson. "The FHA Secure will bring stability to the housing market and give eligible families who were in good financial standing before their loans reset a chance to keep their homes." FHA released new refinance loans for consumers who were not late on the mortgage payment prior to rate adjusting. One of them is FHASecure a mortgage created to offer a fixed rate refinance solution to homeowners who are trapped with an ARM.
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Finance a new home or get help buying a foreclosed property with an affordable mortgage from FHA Home Loan Services.
Refinance and Save Money Now! FHA Mortgage Rates dropped below conforming rates in 2008, but with the economy and inflation concerns, interest rates will likely increase soon. Refinance today and get a fixed rate guarantee for thirty years.
FHASecure is "a temporary program designed to provide refinancing opportunities to homeowners" who "may refinance mortgages that, due to the increased mortgage payment following the reset, have become delinquent". However, HUD warns that: "FHA reserves the right to reject for insurance those mortgage applications where it appears that a loan officer or other mortgagee employee suggested that the homeowners could not stop making their payments, refinance into a FHA insured mortgage..."
The FHA Secure Initiative has been expanded to help even more underserved people facing foreclosure, in July, 2008, the FHA loan initiative expanded to allow:
Borrowers who were late on three monthly mortgage payments, either consecutively or three times in the previous 12 months. A loan-to-value (LTV) ratio of 90% is required.
According to the Housing and Urban Development (HUD) website, to qualify for FHASecure, eligible homeowners must meet the following five criteria:
The mortgage loan being refinanced has to be a non-FHA ARM (adjustable rate mortgage) loan with a history of on-time mortgage payments before the borrower's teaser rates expired and loans reset;
Interest rates must have or will reset between June 2005 and December 2008;
Three percent cash or equity in the home;
A sustained history of employment; and
Sufficient income to make the mortgage payment.
The FHA Secure plan helps more than single family home owners. They also help owners of manufactured. The manufactured home needs to be on a permanent foundation and meet HUD's guidelines to qualify. And, FHA refinancing also makes considerable allowances for owner-occupied 2-4 unit properties. 1-2 unit properties allow for a cash-out refinance of up to 95% of the properties appraised value, and 3-4 unit properties can cash-out of to 85% of their appraised value. FHA refinancing can be even done on a property with deferred maintenance or in the middle of getting work done through an FHA 203K or FHA Streamline K refinance. Most conventional loans will not loan on a property that is "subject to" repairs being completed.
FHASecure allows no cash back because it's specifically for foreclosure prevention. But, there are no prepayment penalties. And qualifying for the new FHA Secure mortgage isn't as hard as it is to qualify for most conventional loan. Your credit report can even have a Chapter 7 Bankruptcy discharged just 2 years ago, with acceptable re-established credit. Chapter 13 Bankruptcies do not have to be discharged at all to qualify for FHA financing, as long as a 1 year satisfactory trustee payment and mortgage payment have been made. Refinance your ARM and save. Complete the free loan evaluation on this page to see if you qualify for fixed rate FHA refinancing under FHASecure.