Bush Has Announced the FHASecure Initiative - 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.
FHASecure will bring stability to the housing market and give eligible families, who were in good financial standing before their loans reset, a chance to keep their homes. FHASecure expands the number of borrowers eligible for FHA-guaranteed loans to include homeowners in default.
For more information and FAQ's on Bush's FHA Secure you can go to the FHA's Website Directly at http://www.fha.gov/about/fhasindqa.cfm
For a copy of the text of the document go to www.fha.gov/reference/ml2007/07-11ml.doc
One of the eligibility requirement for FHA-Secure is that the homeowner must not have late payment history on the current loan prior to the interest rate resetting.
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 FHA Secure initiative is currently scheduled to end in December 2008, leaving homeowners in Subprime ARMs one year to determine whether they are eligible for this exceptional low rate financing. Don't delay, find out if you qualify by calling 415-617-5448 today.
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 Home Jones at 415-617-5448 or [email protected] 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.
FHASecure Initiative announced by Bush allows homeowners with non-FHA ARM loans that will reset between 6/2005 and 12/2009 eligible for and FHA-insured loan.
refi-fhasecure - HUD has recently announced a refi-fhasecure program designed to help consumers who have fallen behind on their recently adjusted loans. This refi-fhasecure will allow a consumer to roll up to 6 months past due payments into a new refinance loan as long as they qualify. We will be taking a look at the refi-fhasecure program parameters available to the public and explain who exactly can qualify for this loan.
In order to qualify for a FHA refi you will have to prove that your late payments started after your adjustable rate mortgage increased, FHA will not approve borrowers who just paid late due to financial irresponsibility. You will not be able to receive any cash back for the FHA Secure program. The FHA Secure program will allow home owners with delinquent mortgage payments to refinance to a fixed rate FHA mortgage. The FHA secure program will not however help homeowners who have properties that have dropped in value and are now worth less the n the mortgage balance. The FHA secure program will allow home owners to refinance their home up to 97.75% of the appraised value. All home owners that refi with the FHA secure program will still have to qualify under FHA lending guidelines to ensure they have the income to repay the mortgage and avoid the same problem they are refinancing out of.
Under FHASecure, borrowers that are delinquent on their mortgages as a result of interest rate resets will now be able to refinance using an FHA-insured mortgage. The FHA has never permitted and will not include pre-payment penalties or teaser rates that are common in exotic mortgages and have caused much of the current market troubles.
The FHASecure program will not be available until January 2008. There are certain restrictions to use FHA-Secure. One of the requirement is that the mortgage being refinanced must be a non-FHA Adjustable Rate Mortgage (ARM).
If you live in a high cost area, such as California, Florida, or metropolitan New York, New Jersey or Connecticut, chances are your property is worth too much money or your loan amount is too high to qualify for an FHA secure refinance. If your existing loan amount is higher than $300,000, please write your Senators and your Congressmen to request that the FHA program be extended to help borrowers with larger loans in high cost areas.
If you are looking to refi-FHASecure may be a good bet if you are in an 80/20 loan currently. Even if your home has gone done in value, you may still be able to able refinance your adjustable rate first mortgage lien. You would just need a subordination agreement from your current second mortgage holder. There is no CLTV(combined loan-to-value) restriction on the refi-FHASecure loan as long as you qualify otherwise.
Refi-FHASecure loans can help delinquent property owners obtain a FHA-insured refi if you have about 3% equity in the home, established income stream and a history of ontime payments for at least 6 months prior to adjustment date.
Average FHA Fico Score - Many people have read about the new FHASecure Initiative and are curious what the average FICO score is for an FHA loan. Since FHA loans are not fico driven, it is best to look at what credit criteria is suitable for an FHA loan. The next few paragraphs will review the minimum credit criteria for FHA Loans.
A FICO score is not even required to qualify for an FHA Loan, so the average FICO Score of an FHA loan is a moot point. To see if you can qualify for FHA Financing by an experienced mortgage professional, contact Home Jones at 415-617-5448 or [email protected].
FHA financing is even available to borrowers whose average FICO credit scores are below 500, however most lenders do not offer financing to these borrowers. However, FHA financing may be available to you even if your average FICO score is very poor, even below 500, with a sufficient explanation. To find out more, please contact a representative at 415-617-5448
The Average FHA Fico Score can include a Chapter 7 Bankruptcy discharged just 2 years ago, with acceptable re-established credit. Ch. 13 Bankruptcies do not have to be discharged at all to qualify for FHA financing, as long as a 1 year satisfactory trustee payment and mortgage payment have been made.
Borrowers with very high credit scores often also find FHA loan programs beneficial for their low down payment options. Consider this: you can purchase a 3 or 4 unit property with an FHA Loan with only 3% down and no pricing difference! FHA does require loans to be owner-occupied, and 3-4 unit properties require the borrower to have 3 months mortgage payments in reserves after closing.
With the new FHASecure initiative, borrowers can even be past due on a recently adjusted arm and still qualify for FHA financing. The main requirement for this program is that the debt ratios must be in line and the mortgage needs to have been current prior to the adjustment period.