FHA Home Loans

The FHA Secure Loan Program is quickly growing as more and more families use this valuable program to get lower interest rates, get out of unfavorable mortgage loan conditions, and keep their homes once their adjustable interest rates begin to increase to levels that they can not afford.

The way that the program works is that the Federal Government offers a more secure mortgage loan to those people who were victims of predatory lending practices in the past. Mortgage companies may have funded some mortgages to people that they could not possible afford. This means that those people would eventually lose their homes unless they somehow began making more money or were able to refinance into a better deal.

The problem was that many of these people waited too long to try and refinance. Once their adjustable mortgage interest rates began to in crease, they could no longer afford their payments, and may have missed a payment or been late on payments which had a derogatory effect on their credit and made it difficult for them to refinance and get any better interest rate in order to make their mortgage payment affordable again. This left many homeowners between a rock and a hard place. They originally had an affordable payment which has increased to unaffordable which caused them to have credit problems which now are a road block to refinancing their loans and keeping their homes. The federal government saw an increase in foreclosures and decided they needed to do something about helping Americans retain their homes.

According to the FHA, in the small amount of time that the FHA Secure program has been implemented, over 40,000 refinances have occurred and over 127,000 applications have been received and are in the process of refinancing. This program is already helping thousands of people keep their homes and clean up their credit issues that were caused by their adjustable rate mortgage loans.

This program has the following criteria to qualify:

  • You must have an adjustable rate mortgage, interest only mortgage, or balloon mortgage.
  • Your mortgage must be past the date of the original fixed rate, or about to hit that date and your interest rate has already or is about to increase.
  • You can refinance with the FHA Secure program if you are in default on your current mortgage loan. The FHA does want to see that your credit was normal before your adjustable rate took effect, and that your credit problems or loan default took place as a result of the increase in your mortgage loan interest rate.
  • You must go through normal lending requirements and application guidelines with an FHA approved lender.

The FHA Secure program is exactly the same as getting a normal mortgage loan refinance with a traditional lender accept that they are willing to overlook credit problems that occurred as a result of predatory lending practices. Responsible lenders should consider if you can afford the monthly mortgage payment once your rate increases, and base your loan eligibility on those factors.

For more information on the FHA Secure loan program go to www.fha.gov.