The FHASecure program was designed as a mortgage refinancing option for homeowners looking at a default on their mortgage or foreclosure as a result of payment adjustments on subprime loans.
If you are struggling to pay your adjustable mortgage, look into the FHASecure loan program to see if it can alleviate the situation. FHASecure refinancing is available to single- and multi-family properties, and manufactured homes. Borrowers for this program are subject to the standard FHA loan requirements, including being able to show a steady payment history, having a stream of income from a reliable source, having an appropriate credit score and having a debt-to-income ratio of 41 percent.
The specifics for a FHASecure loan on the other hand entails applicants be late or behind on mortgage payments, have no more than three percent cash or equity in the property and be in default or foreclosure as a result of interest rate increases.
Variable rate mortgages have put many homeowners under financial stress. In fact, they are a major reason for why families are losing their homes. The FHASecure program is a broad step toward providing relief and keeping people in their homes. While like any loan, approval is not guaranteed, this program has become a boon for many who need lower payments, to avoid default and foreclosure, and to protect the most important investment of their lives.
One requirement of all FHA-insured loans is that homeowners maintain a mortgage insurance policy. This is a sound investment as it protects the homeowner in case they find themselves unable to pay on the loan for a variety of reasons, including sudden unemployment or long term illness that prevents work. Another is applicants will need an escrow impound account for insurance and property taxes, and a FHA MIP.
Be thoroughly prepared to provide extensive information about your finances. This can include current and previous addresses, social security numbers, employer information, gross monthly salary, financial information for checking, savings and other accounts, info about outstanding loans, value of personal property and if homeowner has any other property, check stubs, and W-2 forms and 1040s.