Bail-out for homeowners facing foreclosure. FHASecure program allows homeowners to borrow up to 97% of the value of their home. You can include up to 6 months of past due mortgage payments in the new loan amount.
The main benefit of the FHASecure loan program is getting consumers out of adjustable rate loan program they cannot afford. The FHASecure loan will be for a fixed rate.
FHASecure was created as a tool to help consumers caught in a jam over 2 trillion dollars of mortgages are due to reset in 2008, according to some analysts.
Under certain conditions, FHA will insure first mortgages where (1) the existing note holder writes off the amount of indebtedness that cannot be refinanced into the new FHA loan, such as - the value is lower than the existing mortgage.
There are specific criteria that must be met in order to qualify for FHASecure:
•1. First and foremost, you must have a history of ‘on time mortgage payments', before your teaser rate expired---- which means you must have had a decent credit history.
•2. Your interest rate must have reset after June 2005 but before December 2009.
•3. You must have at least 3% equity in your home.
•4. You must have a sustained history of employment.
•5. You must have sufficient income to make your mortgage payments
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