FHA Secure Helps More Than 33,000 Families Avoid Foreclosure

December 4th, 2007 Categories: Real Estate News

The Bush administration’s FHA secure has over 33,000 families so far and expects to have helped 50,000 by year’s end.

In light of all the changes taking place in the mortgage world, FHA is really a life saver. Remember FHA Does Not Use FICO Scores

WHAT IS FHA SECURE?

On August 31, 2007, President Bush announced the creation of FHASecure. Backed by the government, FHASecure is enabling homeowners who have a history of on-time mortgage payments under their original interest rates, but missed payments after their rates reset, to refinance into FHA’s mortgage insurance program. Families with high-cost mortgages and mortgages that are due to reset, but are still current on their loan, also continue to refinance through FHASecure. This is a more viable option because FHA-backed loans are less likely to result in foreclosure.

WHO IS ELIGIBLE FOR FHA SECURE?

To qualify for FHASecure, and include the delinquent loan payments, homeowners wishing to refinance must meet the following requirements:

Have a non-FHA insured ARM that has reset;
Sufficient income to make the mortgage payment; and
A history of on-time mortgage payments before the loan reset.

Homeowners who are current on their conventional mortgages must have sufficient income to make the mortgage payment.

By refinancing into a FHA insured mortgage, you can expect to pay lower monthly mortgage payments. FHASecure can improve the quality of life for many communities by helping to reduce the number of mortgage defaults and bringing greater stability to local housing markets.

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