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Homeowners who cannot refinance their mortgages due to delinquent payments, credit issues, or loss of income may find relief with an FHA Secure refinance. FHA mortgages cannot be refinanced under this program.

FHA Secure Refinance Mortgage Offers Second Chance

Homeowners who are recently or currently delinquent on mortgage payments typically cannot refinance under conventional mortgage requirements, but FHA offers qualified homeowners a chance to refinance to fixed rate or ARM home loan. Here are some highlights of FHASecure's refinance requirements:

  • Eligibility: Borrowers currently have conventional fixed or adjustable rate mortgage loans, and must demonstrate that they fell behind in payments due to an ARM reset or "extenuating circumstances" that do not presently impact ability to make mortgage payments. Homeowners who were unemployed or otherwise suffered reduced income, but have regained employment may qualify for refinancing under the FHASecure program. Existing mortgage features may include adjustable rates, interest only, payment option, or negative amortization.
  • LTV and Delinquent Payments: Under the FHASecure refinance program, delinquent mortgage payments including principle, interest, taxes and insurance (PITI) occurring after an ARM reset or hardship circumstances may be rolled into the new mortgage. A current appraisal is required for determining the refinance amount.
  • Home Equity Line of Credit (HELOC): HELOC balances in excess of $1,000 taken within the preceding 12 months cannot be rolled into an FHASecure refinance unless the funds were used for home repair or renovation.
  • Mortgage insurance premiums: The upfront mortgage insurance premium (UFMIP) rate is 2.25% of the mortgage amount for delinquent loans and for LTV ratios of 95% or more. The annual MIP rate for refinances under these conditions is .55%. FHASecure refinancing for non-delinquent mortgages and for less than 95% LTV are 1.50% UFMIP and .50% annual MIP.

Mortgage lenders are required to provide documentation of ARM resets or circumstances causing delinquency of your existing mortgage loan. Contact your present mortgage lender or approved FHA mortgage lenders to learn how the FHASecure Refinance program can help you.


Karen Lawson
Karen Lawson is a freelance writer with extensive experience in mortgage banking and home loan loss mitigation programs. She holds BA and MA degrees in English from the University of Nevada, Reno.