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.

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.

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.

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.

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 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.

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.

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.

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.

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

» DISCLAIMER: The information contained in this article on 'Bush Has Announced the FHASecure Initiative' is a collection of contributions by licensed mortgage professionals and is not the opinion of Broker Outpost LLC. Always consult a licensed professional before applying for a mortgage.