FHASecure Loan Program and new FHA Refinance Options for 2008
The new FHASecure Loan Refinance Program may be perfect for you if you are a homeowner currently in default because of an increased interest rate on your home loan. The FHA is breaking new ground with its secure refinance loans, which offer homeowners who are defaulting on their loans and in jeopardy of being foreclosed upon another chance to keep their homes.
You could qualify for the FHASecure Loan Program if, by way of mortgage contract and credit history, you are able to show that you have an adjustable rate mortgage loan and are in default as a result of an increased interest rate on your home loan.
The idea behind an adjustable rate mortgage is that a lender gives a borrower a loan based on the borrower's current income level, expecting the owner's income to increase as time passes. Over the past few decades, however, we have seen interest rates spike to unpredicted levels, as well as stagnant salary increases due to the poor economy. Now that many of these mortgages have had time to "adjust", many homeowners are having difficulities making their payments on time and in full. Through the FHASecure Loan Program, the FHA wants to help homeowners in these situations avoid foreclose and keep their homes.
The FHASecure Loan Program is in a position to help more than just single family homeowners. If you have one of the following types of homes and are in default because of a high interest adjustable rate mortgage, the FHA may be able to help.
The FHASecure Loans are available on the following types of homes:
- Single family homes
- Manufactured homes
- Multi-family homes
Having followed the trends in the current mortgage market, the FHA understands that many homeowners need help to keep their homes. As the government works to change laws and stop mortgage loan companies from engaging in bad lending practices, the FHA is using their new Secure Loan Program to help families refinance and avoid foreclosure.
