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FHASecure Loan Program will allow homeowners who cannot afford their payments to refinance with
FHA insured mortgages ...if they have good credit
President Bush laid out future for the FHASecure Loan, a new program that will be
available to homeowners shortly to help them avoid foreclosure. The Bush program will save some of
the 240,000 at-risk families by allowing them to qualify for FHA's mortgage insurance even so long
as they have a reasonably good credit. Until now the FHA has not permitted delinquent borrowers to
qualify for their loan program.
But, perhaps the best news of all is that the FHA Secure will also help
beleaguered homeowners refinance their exiting, in default, loans with FHA insurance.
How FHA Secure Works
Essentially the plan is for FHASecure Loan to offer borrowers caught up in the subprime
crisis an option of refinancing their current ARM loans to loans which the agency will insure. However, one
provision may make it difficult for some homeowners to qualify. That is, they must have made payments on time for
at least six months prior to their ARM loan's change date to a higher rate. The effect
is to protect these responsible families who were taken in by teaser rates that have since increased
(sometimes double or triple) and have caused them to default on their increased payments.
According to President Bush "in the coming days'' ...the FHA will begin a
new
program called FHA Secure which will permit
homeowners who have a good credit rating but can't afford their current payments to refinance into FHA-insured
mortgages. This means that many families who are struggling now will be able refinance their loans, meet their
monthly payments and keep their homes." ' Bush said. ``We going to start reaching out and make sure people know
this option is available to them.''
According to the FHA, offering the new program, in conjunction with risk base premium pricing
will afford the agency the opportunity to bring stability to the real estate market by reducing the flood of
foreclosures, reducing home value depreciation and creating a more liquid real estate market.
Who Qualifies?
Interestingly, the FHA does not actually make any loans itself. What the agency does
instead is to offer mortgage insurance through "traditional" FHA approved lenders. The new
program, FHA-Secure, is limited to homeowners who actually live in their property as their primary
residence. At the current time it seems the FHA secure Loan program is designed to assist the
individual homeowner and not investors.
The FHASecure program will operate essentially under the same guidelines as the agency's
existing mortgage insurance program. There will be no prepayment penalties and no tease rates. See FHA Secure qualification
details.
Bottom line: The program would allow homeowners who have good credit histories but who
can't afford their increased mortgage payments to refinance into mortgages insured by the
FHA.
FHASecure.com is dedicated to getting the word out to homeowners who
qualify for the FHA secure loan and to explain the benefits of the new refinance options.
FHASecure
Mortgage Help: Naples FL
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