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 who is currently in default as a result of the interest rate on your home loan increasing. The FHA is breaking new ground with their secure refinance loans that allow homeowners who are defaulting on their loans and in jeopardy of being foreclosed upon another chance to keep their homes.
In order to qualify for the secure loan you must be able to show by way of mortgage contract and credit history that you are in default as a result of the increasing interest rate on your home loan. As long as you have an adjustable rate mortgage loan and are having problems making payments now that the interest rate has increased and your monthly payment amount is too expensive, you could qualify for the FHASecure loan program.
The idea is that many lenders give loans to people based on their current income even though they know that once the interest rate begins to increase and the monthly payments go up, the homeowner will no longer be able to afford the payments. The FHA wants to help homeowners avoid foreclose and retain their homes.
It is not only single family homeowners that the FHASecure loan program is willing to help. If you have a different type of home and you are in default because of a high interst 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
The FHA has followed the trends in the current mortgage market and sees that homeowners are in need of assistance to keep their homes.As the government works towards changing laws regarding bad lending practices from mortgage loan companies, the FHA is using the new secure loan program to help families refinance into affordable mortgage payments and avoid foreclosure.