FHA announced the new FHA Secure Refinance Program that was created to help consumers who have high rate ARMís refinance into a fixed rate mortgage loan that enables them to keep their home. According to the Federal Housing Administration, "The new FHA Secure program, FHA will allow families with strong credit histories who had been making timely mortgage payments before their loans reset-but are now in default-to qualify for refinancing."
FHA reported recently that there has been a significant increase in the number of conforming borrowers refinancing into FHA mortgage programs.
With FHA Secure, it can help even more.
The number of these home refinancing transactions has more than tripled since the beginning of 2006. Eligible homeowners will be required to follow the same underwriting guidelines as the traditional FHA loans and also pay the required mortgage insurance premium.
Borrowers who presently carry a variable rate and who have also fallen behind on their 1st home loan payment since the rate adjusted should evaluate the secure FHA loan now because this program will not be available forever.