| FHA secure loans were introduced as a way for | | | | payments, your lender will still be paid from an |
| homeowners with non-FHA adjustable rate mortgage | | | | insurance fund. This insurance on the loan allows |
| to refinance even if they are delinquent in their monthly | | | | lenders to work with individuals with less than perfect |
| mortgage payments. The Federal Housing Association, | | | | credit. |
| which, in conjunction with the US Department of | | | | As with most kinds of loans, FHA secure loans have |
| Housing and Urban Development (HUD), insures FHA | | | | advantages and drawbacks. The most obvious benefit |
| mortgages wanted to provide a way for those | | | | is that you can refinance out of the adjustable rate |
| homeowners who are in trouble to refinance into a | | | | mortgage you currently have and into a low fixed rate |
| safe and affordable financing option. With this | | | | mortgage. A point you should be aware of is that the |
| refinancing option from the FHA, lenders may not | | | | maximum amount you can take a loan out for is |
| automatically disqualify you from refinancing just | | | | different depending on what county you live in within |
| because you are delinquent on you mortgage. | | | | the United States and typically less than you would be |
| Additionally, the lender may offer you a second | | | | able to get with a conventional loan. This really only |
| mortgage should you FHA refinance loan not cover | | | | makes sense, however, because FHA loans were |
| the total outstanding mortgage balance. | | | | intended for first-time homebuyers and homeowners |
| FHA does not provide a loan, but rather insure the | | | | with lower income that are not typically able to afford |
| home loans made by approved FHA lenders. If you | | | | a large down payment. |
| should default on, or fail to pay, your monthly mortgage | | | | |