| In September of 2007, the Federal Housing | | | | you may have missed on your mortgage to be able to |
| Administration, or FHA, introduced FHA Secure to help | | | | apply for a FHA Secure refinance. Instead, your |
| decrease the likelihood of foreclosures resulting from | | | | refinance amount will depend on your property value, |
| the spike in interest rates for Adjustable Rate | | | | how much you owe on your loans currently, and |
| Mortgages (ARMs). The FHA designed the program | | | | whether or not a FHA-approved lender is willing to give |
| to help people with ARM loans keep their homes even | | | | you a second mortgage to help cover the difference |
| if their interest rates jumped so high that they couldn't | | | | between what you owe on your home and its current |
| afford to continue to make payments on their | | | | value. |
| mortgages. By making this refinancing option on FHA | | | | Why Choose these FHA Loans? |
| loans available to homeowners with ARMs, the FHA | | | | By refinancing with a FHA Secure loan, you can |
| gives you the ability to make your mortgage payments | | | | secure lower monthly mortgage payments. With lower |
| and keep your home. | | | | monthly payments on your loans, you can avoid |
| What Does This FHA Loan Program Do? | | | | default and enjoy more stability. With a FHA insured |
| FHA Secure is a program that allows homeowners to | | | | mortgage, you will not have to face prepayment |
| refinance their homes with FHA insured loans. These | | | | penalties, teaser rates, or balloon payments. The FHA |
| FHA loans are specifically geared towards | | | | requires its lenders to offer FHA loans at market rate |
| homeowners who have non-FHA adjustable rate | | | | with terms up to 30 years. The FHA insured loans are |
| mortgage loans (ARMs) and who are current or | | | | also fully amortized, which means each payment will |
| delinquent on their mortgages. Under this program, a | | | | go towards both your interest and your principal, to |
| FHA approved lender will not automatically disqualify | | | | ensure that you are actually paying down your loan. |
| you when you apply to refinance if you are delinquent | | | | Whether you are already delinquent on your loan or |
| on your mortgage. In fact, they may be able to offer | | | | current with the threat of delinquency looming, |
| you other options to help you make the payments on | | | | refinancing your home with FHA loans through FHA |
| your loans. | | | | Secure will get you back on your feet before you |
| Whom Can Benefit from FHA Secure? | | | | face foreclosure. If there is not enough equity in your |
| Any homeowner who is current on their ARM and has | | | | home to cover any prepayment penalties that may be |
| enough income to make the payments on their loans | | | | attached to your current loans or the refinancing costs, |
| can apply to refinance with the FHA Secure program. | | | | you can ask your FHA approved lender to consider |
| Homeowners who have had trouble making payments | | | | offering you a second mortgage to cover the |
| on their mortgage loans because of the interest rate | | | | difference or a short payoff on your existing loans. |
| reset are also able to apply for a FHA insured loan. | | | | The FHA has made this program available to help |
| Option ARM loan holders who have had their | | | | ensure that homeowners stay in their homes and to |
| mortgage "recast" to fully amortizing are eligible as well. | | | | help maintain the property values by decreasing the |
| You can apply for FHA loans even if you already | | | | number of foreclosures and vacant properties in |
| have both a first and second mortgage. The FHA | | | | neighborhoods across the nation. |
| hasn't set any sort of limit on how many payments | | | | |