Recently, President George Bush announced the FHASecure Initiative. This is an FHA-Insured loan program designed to help consumers who have fallen behind on mortgage payments due to their mortgage payments adjusting upward. Many consumers who have purchase or refinanced in the last 5 years did so with an adjustable rate mortgage(ARM). Many consumers are finding it difficult to afford the new, higher adjusted payments.In some cases, the FHASecure Initiative may allow secondary financing to remain in place behind the first mortgage. This would allow the total mortgage amount to fall above the FHA loan limit. The combined loan to value can exceed 100% if qualified.
One of the main benefits of the FHASecure Initiative is that consumers who have fallen behind since their rate has adjusted are not immediately disqualified for financing. As long as your payments were up to date prior to your adjustment period, you may qualify for financing under the FHAsecure Initiative.
The president did mention that it is not a "bailout" for lenders or Real Estate speculators. Instead, he said, the government has a role to play in helping American homeowners "get through this difficult time." FHA Secure is a temporary program, however, and it is set to end by the end of calendar year 2008.
According to the FHA mortgagee letter that spells out the requirements for the refi program, borrowers that were current on their monthly payments up to the time of the reset of their ARM can qualify for a new FHA-insured mortgage.
The FHASecure Initiative may be able to help you save your home. You must, however, use an FHA-Approved Company in order to utilize the FHAsecure Initiative. Contact Tony Webb at 954-475-8787 or acwebb1@bellsouth.net to review your loan options with the FHASecure Initiative.
FHA secure will allow home owners to refinance 97.75% of the appraised value of their homes value. How ever FHA secure does not allow for cash out refinances.
