FHA Secure Home Refinance Information
WHAT IS FHA Secure?
FHA Secure is a refinancing option that gives homeowners with non-FHA adjustable rate mortgages, current or delinquent the ability to refinance into a FHA-insured mortgage and get a low fixed rate. With FHA Secure, the lender will not automatically disqualify you because you are delinquent on your loan, have a low credit score or have encountered other financial adversities in the past. The FHA insured lender will be wiling to work with you to restore your mortgage loan to a more affordable, less volatile fixed rate mortgage.
WHO IS ELIGIBLE
So long as you are current on your mortgage and have sufficient income to make the mortgage payment, you are eligible for an FHA Secure refinance. If you are delinquent, the default must have been due to the inability to pay due to an interest rate reset or abrupt increase. You will also be eligible if you have a pay option ARM and have missed payments due to a loan recast, adjusting to the fully amortized interest rate.
By refinancing into a FHA-insured mortgage, you can expect to pay lower monthly mortgage payments at a fixed rate. FHA Secure 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. FHA Secure can help homeowners greatly by allowing them to not only keep their home, but to restore financial stability through a better mortgage loan.
FHA-Secure is a refinancing option that gives homeowners who were making timely mortgage payments before their loans reset but are now in default, a second chance with a FHA insured loan product.
To qualify for FHA-Secure homeowners must meet the following requirements:
- Have a non-FHA insured ARM that has reset
- Sufficient income to make the mortgage payment
- A history of on-time mortgage payments before the loan reset
