FHA SECURE REFIANCING

The new FHA Secure program helps home owners who have not made payments on their mortgages and fallen severly behind on payments.

The program allows home owners to refinance their ARM Mortgages.

ARM's have caused many to fall behind on their mortgage payments and is one of the leading causes of the high foreclosure rate.

Traditionally a home owner with a late mortgage payment would not qualify for an FHA mortgage refinance, however under the FHA Secure program borrowers are eligible for an FHA refinance if they can prove the late mortgage payments were directly caused by an adjusting mortgage rate that has increased from the standard introductory rate.

FHA Secure loans handled by private lenders, mortgage brokers and banks will be availible to home owners at the current market rate and insured by the FHA.

Borrowers will be eligible to refinance up to 97% of the total appraised value of their home. FHA will charge different insurance premiums.  By using the FHA Secure program with the standard FHA underwriting standards FHA will increase the availability of the program and help even more troubled home owners.

The FHA Secure refinance program will not however help home owners who have properties that have depreciated in value and are now worth less then the current mortgage balance. it is estimated that an initial 80,000 home owners may be helped by the FHA secure program.  What we need is to help everyone but this is a good start.