FHASecure Financing - The Facts

If you are a current homeowner, no doubt you have EARNED IT!

It's the American dream, owning a home to call yours. However with the state of the mortgage industry, some homeowners who choose an adjustable rate mortgage (ARM) are now facing the reality of the losing their dream.  2 to 5 years ago, adjustable mortgages were incredibly low and at that time nobody would have thought this industry would have gone through a major correction.   Now some of those homeowners are experiencing their adjustable rate increasing to a rate they cannot afford to pay.  Some critics could argue these borrowers should accept some responsibility for taking such a risky loan. Furthermore, the lenders offering these loans should also be responsible for offering loans to borrowers who may not be able to make the payments if the rates were to increase.  That's whole another topic! Back in the day and even now, borrowers wanting an ARM mortgage are actually approved at a rate which is 1% - 2% higher. This approval process weeds out those who might experience financial problems as result of a rising ARM rate.  

So the real problem is not just the rate has gone up and people cannot afford the payment.  It's actually a combination of a increased mortgage rate and a weak economy.  Some of these homeowners are earning less money today than a couple years ago and those who were dual income families are now down to one spouse working.  To make matters worse, gas prices have sky rocketed, credit card companies are required to collect more with each monthly statement and the list goes on. So while it is a problem, it's not one that most homeowners or lenders should or could have seen coming.

So the solution is......maybe for some a FHASecure refinance.  FHASecure is a refinancing option that gives credit-worthy homeowners a second chance.  Homeowners who were making timely mortgage payments before their rate adjusted but are now in default could be eligible for a refinance.

WHO IS ELIGIBLE

To qualify for a FHASecure, and include the delinquent loan payments, homeowners must meet the following requirements:

1. Have a mortgage which is not a FHA ARM now;
2. Must not be a fixed rate mortgage now;.
3. The rate has already adjusted;
4. Formal income qualification for the new mortgage payment; and
5. Have a history of on-time mortgage payments before the rate adjusted.

Possibly the greatest feature about this loan is there is no limit on how far behind on payments a homeowner can be. Whether current on the loan or 6 months behind and facing foreclosure, the amount a homeowner can refinance is dependent on their home's value and the amount of equity they have left.  If there is not enough equity, then it's up the homeowner's current lender to offer a second mortgage to bridge the gap between what is owed and what the home is worth.

By refinancing into a FHA insured mortgage, a homeowner can expect to pay lower monthly mortgage payments. FHASecure can improve the quality of life for many communities by helping to reduce the number of mortgage defaults and bringing greater stability to local housing markets.

For additional information about the FHASecure loan, contact me or visit the FHASecure FAQ website.