HUD - FHA Secure Refinance Program

Many homeowners with adjustable rate mortgages find themselves in financial trouble because of current interest rate increases.

Foreclosure is a bigger threat than ever!

On August 31, 2007, President Bush proposed the new FHA Secure Refinance Program. This program is designed to help homeowners into fixed rate mortgages through the FHA to reduce their monthly mortgage payments and to eliminate the chance that their mortgage payments will increase in the future. Begining July 14,2008 the FHASecure refinancing plan allows homeowners who have missed up to three mortgage payments in the last 12 months under certain circumstances to avoid foreclosure by using FHASecure.
 

If you are match any of these statements, the FHASecure Loan maybe able to help you.

• Currently late and behind on mortgage payments?
• Interest rate increase has caused you to go into mortgage default or foreclosure?
• Have little or no equity in your home?

Apply Now and you will be able to learn if you qualify to refinance your adjustable rate mortgage into a fixed FHA mortgage with no out of pocket closing costs. This means that with the help of FHA, you may be able to refinance your home into a lower monthly payment and be assured that your monthly principle and interest payments will never increase.

With the number of homeowners in these ARM’s, it is important for you to act quickly, so please, Apply Now so that our FHA Mortgage Specialists can help you, today.

FHA has recently experienced a substantial increase in the number of conventional borrowers refinancing into FHA products. With FHASecure, it can help even more. The number of these refinancing transactions has tripled since the start of 2006. FHA's transactions are projected to surpass 100,000 loans by the end of the fiscal year. To date, these figures do not include refinances for delinquent borrowers.

The FHASecure initiative will operate under the same safe guidelines as the FHA's existing mortgage insurance program without affecting FHA's financial health. Eligible homeowners will be required to meet strict underwriting guidelines and pay a mortgage insurance premium, which offsets the risk to FHA's insurance fund at no cost to the taxpayer.

FHASecure , like all FHA products, will be underwritten to ensure the borrowers have the ability to repay the loan, will require escrow for taxes and insurance, and will continue to offer unprecedented foreclosure prevention assistance. The FHA has never permitted and will not include pre-payment penalties or teaser rates that are common in exotic mortgages and have caused much of the current market troubles.

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.

"FHASecure is designed for families who are good borrowers but were steered into high-cost loans with teaser rates," said Assistant Secretary for Housing-FHA Commissioner Brian Montgomery. "These homeowners, many of whom are minorities, need a safe, affordable mortgage product that will help build wealth. All FHA borrowers pay mortgage insurance premiums to offset claims to the FHA insurance fund and ultimately prevent risk to the taxpayer."

FHASecure will also bring much-needed liquidity to the mortgage market. FHA anticipates more lenders will offer FHA-insured loans, pool them, and securitize them with the Government National Mortgage Association (Ginnie Mae), which has the full faith and credit of the U.S. government. This guarantee makes Ginnie Mae's mortgage-backed securities the safest on the market and helps to channel greater capital into the housing market, benefiting U.S. homeowners.

Need advice? Contact a HUD-approved housing counselor or call
(800) 331-4715.