In September of 2007, the Federal Housing Administration, or FHA, presented FHA Secure to help lower the possibility of repossessions arising from the spike in rate of interest for Adjustable Rate Mortgages (ARMs). The FHA developed the program to assist people with ARM loans keep their houses even if their rate of interest jumped so high that they couldn't afford to continue to pay on their home loans. By making this refinancing option on FHA loans readily available to property owners with ARMs, the FHA provides you the capability to make your mortgage payments and keep your house.
Exactly what Does This FHA Loan Program Do?
FHA Secure is a program that permits property owners to re-finance their homes with FHA insured loans. These FHA loans are specifically tailored to property owners who have non-FHA flexible rate mortgage loans (ARMs) and who are current or delinquent on their mortgages. Under this program, a FHA authorized lender will not automatically disqualify you when you apply to refinance if you are overdue on your mortgage. In fact, they may be able to offer you other choices to assist you make the payments on your loans.
Whom Can Benefit from FHA Secure?
Any resident who is current on their ARM and has more than enough income to make the payments on their loans can apply to refinance with the FHA Secure program. Property owners who have had problem making payments on their mortgage loans because of the interest rate reset are likewise able to make an application for a FHA insured loan. Alternative ARM loan holders who have actually had their mortgage "recast" to completely amortizing are eligible also. You can get FHA loans even if you already have both a first and second mortgage. The FHA hasn't set any sort of restriction on the number of payments you might have missed on your mortgage to be able to obtain a FHA Secure refinance. Rather, your refinance quantity will depend on your unit value, how much you owe on your loans presently, and whether or not a FHA-approved loan provider wants to provide you a second mortgage to help cover the distinction between exactly what you owe on your home and its existing value.
Why Choose these FHA Loans?
By refinancing with a FHA Secure loan, you can secure lower regular monthly mortgage payments. With lower regular monthly payments on your loans, you can prevent default and take pleasure in more stability. With a FHA insured mortgage, you will not need to face prepayment charges, teaser rates, or balloon payments. The FHA requires its loan providers to provide FHA loans at market rate with terms as much as 30 years. The FHA insured loans are also totally amortized, which means each payment will go towards both your interest and your principal, to ensure that you are really paying down your loan.
Whether you are currently delinquent on your loan or existing with the hazard of delinquency looming, refinancing your house with FHA loans through FHA Secure will get you back on your feet before you face foreclosure. If there is not enough equity in your house to cover any prepayment charges that could be attached to your present loans or the refinancing expenses, you can ask your FHA authorized loan provider to think about offering you a second mortgage to cover the difference or a short reward on your existing loans. The FHA has made this program available to help make sure that property owners remain in their houses and to assist keep the unit values by lowering the number of repossessions and vacant units in neighborhoods across the nation.