The FHA Home Mortgage Loan Company introduces the latest home refinancing articles for FHA related mortgage programs.
Still, some of the mortgage brokers and lenders who must sell the new program say it too cumbersome and narrowly focused to help many borrowers."I think the concept is great but I'd like to see the people who are even doing these loans," said Yamila Ayad, a mortgage broker in San Diego, California. It’s a shame that the FHA Secure is unable to reach many California borrowers whose home values have dropped but are still worth more than $362,000, the upper limit of loans FHA can insure, she said.
- FHA Cash Out Refinancing to 95%
- FHA Secure for ARM Refinance
- Bad Credit Allowed
- Fico Scores Are Not Considered
- 15 or 30-Year Fixed Rate Loans
Government Helps Homeowners Refinance with FHA Loans
Many mortgage lenders will have to overlook some of the loan amount or agree to step back of the repayment line before FHA programs will work for many California borrowers, Ayad said. Working out such new terms with individual borrowers and lenders will be a time-consuming challenge.
"We are going to try this with two guinea pig borrowers," Ayad said of the complicated refinancing work that lies ahead. "We are going to see if borrowers would even agree to this and then see if we can make it work for other people." For all the publicized problems, the FHA program could be open to more troubled borrowers under legislation that passed the Senate on Friday and promises to raise the loan limit to $417,000. A second bill in the House of Representatives could raise the loan restrictions to as high as $829,750 in some regions.
If both chambers can agree on a compromise measure and Bush signs it into law, FHA could help an additional 200,000 struggling borrowers, its administrators say. Many of those borrowers turned to the easy terms and quick credit of subprime mortgages that have a built-in interest-rate spike. Before FHA Secure can succeed, some mortgage professionals said, it must gain wider acceptance within the industry. "We do not have a book of subprime business to identify these subprime borrowers," said Dave Greige, an FHA loan specialist in St. Louis, Missouri. "The subprime mortgage servicers out there need to let their borrowers know about this program."