FHA lenders have recently received tremendous attention in the media on the new FHA guidelines which have recently changed to provide major benefits for home mortgages that are delinquent. The new program is called the FHA Secured Program. The major point of emphasis is that the FHA insurance programs will now allow you to refinance your adjustable rate mortgages into a low FHA mortgage rate. However, before you go out and celebrate, there are several specific rules that you must be aware of if you are considering refinancing your adjustable rate mortgage into a FHA home mortgage.
The changes are as follows:
1. The program is available until December 31st, 2008.
2. Your current home loan must be a non-FHA adjustable mortgage that has already reset (means payment has increased).
3. If you have fallen behind on your mortgage due to the increase in the payment since it started adjusting you may still qualify.
4. Your mortgage payment must reflect 6 month's prior to your mortgage payment changing you had on-time mortgage payment history.
5. If there is sufficient equity in the home FHA may still insure mortgages that include missed mortgage payments.
6. If the loan amount that you need exceeds FHA mortgage amount limits or LTV limits then you may qualify for a second mortgage.
7. It must be the residential property that you currently reside in.
Many mortgage lenders don't have the HUD endorsed license to provide FHA insured mortgages. Therefore you may have to do a little more research to find these lenders. Several years ago we saw a trend toward adjustable rate mortgages with low introductory interest rates and payments that have recently reset and increased.
If you are one of the unlucky homeowners that have been devastated by a recent adjustable rate mortgage increase then you need to act quickly, before it's too late and you are in foreclosure. Keep in mind that the best part about a FHA insured mortgage loan is that you can have a FHA loan rate in addition to FHA refinancing assistance if you have a circumstance that contributes to your late payments.
You no longer have to take the risk of refinancing with a unstable lender when you can take advantage of a FHA government home loan that will give you the stability and monthly savings you need.
Author: Chris Rivers
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