According HUD's Federal Housing Administration (FHA) there will be help for an estimated 240,000 families avoid foreclosure by enhancing its refinancing program that will take place immediately. Under the new FHASecure plan, FHA will allow families with strong credit histories who had been making timely mortgage payments before their loans reset-but are now in default-to qualify for refinancing.
According to HUD; To qualify for FHASecure, eligible homeowners must meet the following five criteria:
- 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 2009;
- Three percent cash or equity in the home;
- A sustained history of employment; and
- Sufficient income to make the mortgage payment
For the full disclosure and press release go to: http://www.fha.gov/press/2007-08-31release.cfm