Refinance Your Connecticut Home Mortgage Into A FHA Mortgage

Finally! There's great news for Connecticut homeowners. FHA loan requirements have evolved for Connecticut mortgage loans. The changes were long overdue and the changes are mostly for rising Connecticut adjustable rate mortgages. You may be one of the many homeowners that have been looking to refinance your Connecticut home loan, so this lifeline may have come just in time for you. Before you go and give out your vital information you need to know the new FHA guidelines.

Here are some of the major changes and program terms:

1. The program is only valid until December 31st, 2008.
2. Your current mortgage must be a non-FHA adjustable mortgage that has already reset or increased.
3. If you have fallen behind on your mortgage due to the increase in the payment since it started adjusting you can still qualify.
4. Your mortgage payment must show that the 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 will 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.

This change is long overdue because many Connecticut adjustable rate mortgages have interest rates and payments that have reset. Reset simply means that the rate and monthly payment has adjusted upward (or downward in some cases) based on a number of factors determined by a group of banks or lending institutions.

Most Connecticut homeowners were protected to some degree because of a adjustable rate mortgages that prevents your monthly payment from increasing too much at once. However, that cap can range from two to five percent higher you're your current interest rate. If you never worried about the rising interest rate then now is the time to reconsider.

The best mortgage program that you can get to lock in your mortgage payment is a FHA loan. With a low FHA mortgage loan you can have a FHA loan prime rate and you will have FHA homeowner's assistance program if you hit a tough patch and need some relief on a couple of payments. Don't take unnecessary risks by going with a lender that can be closed next week 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