dcsimg

Free Mortgage Quotes From Lenders

Learning Center

Homeowners who cannot afford rising adjustable rates, or who have experienced financial hardships and can't get caught up on loan payments may benefit from an FHASecure refinance mortgage.

FHASecure Refinance: Offering Help with Delinquent Mortgages

Homeowners struggling with rising mortgage payments may be eligible for an FHASecure refinance mortgage. The Secure refinance program is intended to assist borrowers experiencing financial hardship resulting from higher payments caused by adjustable rates and mortgage features including interest only payments, payment options, and negative amortization. Here are general eligibility requirements; contact FHA-approved lenders or housing counselors for details:

  • Your existing primary mortgage cannot be insured by FHA.
  • Your hardship must be caused by your mortgage payments adjusting upward, or due to circumstances that created temporary cash flow problems, but it can't impair your ability to make payments on your new FHA mortgage.
  • The loan-to-value (LTV) ratio for the FHA refinance mortgage may not exceed 96.5% of your home' current value, but combined loan-to-value (CLTV) for mortgage amounts on your refinance and eligible subordinate loans is unlimited.
  • Junior lienholders must agree to subordinate their interest to the new FHA mortgage.
  • Home equity loan balances in excess of $1,000 which have been owed for less than one year are not eligible for inclusion in your FHA refinance mortgage unless you can document that the funds were used for repairing or renovating your home.
  • Delinquent amounts on your existing mortgage may be included in the new refinance mortgage subject to FHA loan limits and maximum LTV, and the delinquency must have occurred after payments reset or the circumstances causing your hardship occurred.

It can be difficult to refinance if you've missed mortgage payments. You may qualify for FHASecure refinance if you've fallen behind on payments due to a hardship or your payments have increased to the extent you can't afford them. A key requirement is documenting your ability to keep your new FHA mortgage current. The Secure refinance program is designed to help homeowners exchange costly ARM loans and subprime mortgages for affordable FHA mortgages providing stable payments.


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.