The Federal Housing Administration recently passed legislation approving a new program known as the "FHASecure" loan. This program is designed to refinance consumers who have fallen behind on Subprime ARM loans due to recent adjustments in the rate. The "Fhasecure" loan will help consumers with negative equity, or who cannot meet the payments when their ARM loan adjusts.  Expect to see the program available later this year.

At a glance, the FHASecure loan program will finance borrowers up to a 97.75% Loan to value. Up to 6 months past due mortgage payments may be included in the loan amount if the borrower qualifies.

A new appraisal is ordered for the property for an FHASecure loan program. The new appraisal for the Fhasecure loan must be performed by an FHA approved appraiser, and must adhere to FHA guidelines.

The main benefit of the FHASecure loan program is getting consumers out of adjustable rate loan programs they cannot afford, and to help them before their mortgage payments increase too much for their budgets.

The FHASecure loan will be offered as a fixed rate program.

The primary reason that the FHAsecure loan program was created not to bailout for mortgage lending institutions, but rather as a tool to help consumers caught in a jam. 

in 2008 than 2 trillion dollars of mortgages are due to reset, according to some economists.

Under the new program guidelines, FHA will insure first mortgages where (1) the existing note holder writes off the amount of indebtedness that cannot be refinanced into the FHA insured mortgage; or (2) either the FHA-approved lender making the new mortgage or the existing note holder may take back a second lien that includes closing costs, arrearages or previous secondary financing if the indebtedness exceeds FHA prescribed LTV and maximum mortgage amount limits.

For more information about this program, contact David Mordue at davidm@lfgloan.com, or 425.953.4009