| Since the housing bubble has burst and the economy | | | | you have to foreclose on your home, it can mean |
| is at risk for a variety of factors, many people are | | | | major damage to an otherwise good credit report. It |
| finding themselves in trouble. Many of these people got | | | | can also create problems that you will carry with you |
| mortgages that were adjustable-rate mortgages, for | | | | into the future. You might have difficulty purchasing |
| example. With rate increases becoming more and | | | | another home, getting a credit card, or even renting an |
| more common, these folks now cannot make | | | | apartment. However, the FHA Secure Refinance Loan |
| mortgage payments on time or in full. However, even | | | | helps you avoid just this type of situation by letting you |
| for someone in this situation, there is a new option, | | | | sidestep foreclosure and keep your good credit. |
| called the FHA Secure Loan. | | | | FHA Secure Loan - Criteria To Be Met |
| At the end of October 2007, President Bush was the | | | | It is important to note that this is not for everyone. |
| one to announce that a new FHA Secure Refinance | | | | Those applying for the FHA Secure will have to come |
| Loan would be launched. It was designed to help | | | | up to certain criteria in order to qualify for the loan. The |
| homeowners avoid delinquent payments and even | | | | following are the five points of criteria that you must |
| foreclosure. When it comes to the new mortgage | | | | come up to in order to be eligible for this mortgage. |
| product that is now available, basically it is a refinancing | | | | 1. You must have a good history of making timely |
| product designed to help people who are suffering | | | | payments prior to the date the original rate expired |
| from higher mortgage payments. This new product | | | | when the loan was re-established. |
| requires escrow for both insurance and taxes and will | | | | 2. You must have had consistent employment to |
| offer excellent assistance for people trying to avoid | | | | qualify for the loan. This is to ensure that you can pay |
| foreclosure. | | | | off this new loan. |
| FHA Secure Loan Benefits | | | | 3. Homeowners must also be able to prove that you |
| There are several benefits on offer with the FHA | | | | make enough income to pay the new mortgage |
| Secure Loan, and details of just a few of these are | | | | payment each month on time. |
| listed below. | | | | 4. At least 3% of the loan amount either in cash or |
| Benefit #1 - Prevention of Foreclosure - One of the | | | | equity in the property has to be provided by the |
| most important benefits homeowners can reap with | | | | applicant. |
| this type of loan is the ability to prevent foreclosure. | | | | 5. In order to qualify for the loan the homeowner must |
| The thought of losing your home after many years of | | | | show that their current interest rates have been reset |
| making your mortgage repayments on time is | | | | since June, 2005 or that such resetting will occur prior |
| devastating but it does not have to be this way and | | | | to December 2009. |
| help is at hand for people with a good payment history. | | | | When all is said and done, the FHA Secure Loan will |
| Benefit #2 - No Prepayment Penalties - FHASecure | | | | be able to provide much-needed relief for those who |
| also offers homeowners the benefit of no | | | | have been responsible homeowners and mortgage |
| prepayment penalties. Of course, other mortgages are | | | | payers in the past and whose problems stem from |
| offered that do include prepayment penalties, but this is | | | | the current market conditions and such vagaries as |
| not one of them. Because the FHA is fully aware that | | | | the adjustable-rate mortgage. FHASecure will likely |
| people are already struggling to make payments, | | | | bring more liquidity to a mortgage market that has |
| penalties will be avoided so that homeowners can not | | | | struggled mightily within the past year. In the near |
| only skip this particular hardship, but they are also | | | | future, it is also likely that other lenders will offer similar |
| assured they will not be penalized for paying off their | | | | loans. Therefore, if you are in danger of foreclosure, |
| mortgages early. | | | | this loan may just save your home and allow you to |
| Benefit #3 - Keep Your Good Credit - Of course, if | | | | reestablish a secure foundation once again. |