Last year, FHA rolled out FHASecure, a loan program designed to help homeowners with adjusting ARMs (adjustable rate mortgages) get a fixed rate. Last month, FHA re-launched FHA Secure with some fresh new guidelines aimed at helping even more homeowners.

Who is FHA Secure for?

FHASecure is a refinance option that gives homeowners with non-FHA adjustable rate mortgages (current or late on their mortgage) an option to refinance into a fixed-rate FHA mortgage.

You can qualify for FHA Secure if you missed up to 3 mortgage payments in the last 12 months if you missed those payments due to an adjusting rate or extenuating circumstance. If you are not current on your mortgage payment, your missed payments must be the result of an adjustable rate mortgage (ARM) that reset or an “extenuating circumstance.” Extenuating circumstances, as defined by the FHA, include:

1. Income loss by an event beyond control of homeowner
2. Job loss
3. Non-covered medical bills

Other ways to qualify for FHASecure

If you are current on your mortgage, but have an ARM that will be adjusting OR your current fixed mortgage is more than the current value of your home, FHA Secure may also be an option for you.

When you owe more on your mortgage than what your home is worth, you may be at the mercy of your current lender when transitioning into FHA Secure.

• If you have a second mortgage, your current lender must agree
  to subordinate the second mortgage, or agree to take second lien position behind the FHA Secure.
• If your first mortgage is greater than the typical 97% max loan-to-value of FHA, your current lender must agree to voluntarily write down the current balance of the loan to allow you to qualify for an FHA Secure mortgage.

A bit confusing, isn’t it? Even a top financial expert may have a problem fully understanding the intricacies of FHA Secure. What is important is to know that you do have options to refinance, even if it may seem there is no hope.

Speak with a mortgage banker who is approved by FHA and able to offer FHA Secure to find out if you qualify. While the guidelines of FHA Secure may seem daunting, having a new mortgage you can afford is something everyone can get their heads around.

Related Info

• FHA Streamline allows for the easiest refinance of an FHA loan ever. And no appraisal required!
• Find out how you can benefit from an FHA loan today.
• Learn about refinancing with an FHA loan.
• Check out our other low cost refinance loans and home buying loans.

Related posts:

1. Avoid foreclosure with FHA loans – the FHA Secure
2. FHA Loan refinance upswing may be on the horizon
3. FHA Loan Cash-Out Refinance Guidelines Changing – For the Worse!

Tags: ARM, FHA, FHA Loan, FHA Loans, Homeowners, Quicken Loans, Refinance, Refinancing