In 1934 the Federal Housing Administration started its quest to help Americans become homeowners by offering them mortgage insurance on loans through FHA approved lenders. They wish to keep the dream alive that millions of Americans can secure a home of their own with affordable rates.
So you have a mortgage and you are interested in refinancing your home through FHA Refinancing, but there is one problem, you don’t have a FHA mortgage. It may seem like your chance has been lost, but it has not. The program FHA Secure allows those with non-FHA mortgages, current or delinquent to refinance through FHA. FHASecure makes it so the lender will not immediately disqualify you because you are delinquent on your loan, instead the lender would offer a second mortgage to make up the difference in value of your property and what you owe.
If your goal is to get lower payments, prevent foreclosure, and protect your investment without an FHA mortgage keep in mind that through FHA Secure:
- You are not automatically disqualified based on delinquency on your current loan.
- You must have a dependable income and be able to make mortgage payments.
- If you are in default, you must show delinquency of default is the result of increased interest rates and higher mortgage payments.
This program is available for single-family or multi-family homes. Starting on July 14, 2008, FHA Secure will be in affect. This second chance refinancing does not indicate relaxed requirements for credit however. Those applying for this FHASecure program are under the same requirements as those applying for an FHA loan. Borrowers should:
- Have steady income from a dependable source.
- Show a reliable payment history.
- Have debt-to-income ration below 41%.
- Have a credit score appropriate for any home loan.
FHA Secure can improve conditions of life for many by helping to reduce the number of mortgage defaults and bring more stability to local housing markets. Check out this site for more information on FHA loans.
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