Refi Your ARM - FHASecure Loan Program
REFINANCING YOUR ARM
In response to the crisis created by millions of homeowners who have adjustable rate mortgages with increasing rates, the FHA came up with a program to help these people keep their homes and have an affordable payment.
This refinancing option is called FHASecure. It allows homeowners with non-FHA adjustable rate mortgages (ARMs), current or delinquent and even if it has not reset yet, the opportunity to refinance into a FHA-insured mortgage with a fixed rate. With FHASecure, you will not automatically be disqualified if you are delinquent on your loan.
WHO IS ELIGIBLE?
As long as you are current on your mortgage and have sufficient income to make the mortgage payment, you are eligible for an FHASecure refinance. If you are delinquent, the default must have been due to the payment increase of an interest rate reset or, if you have an Option ARM, the "recasting" of the mortgage to fully amortizing.
By refinancing into a FHA-insured mortgage, you can expect to pay lower monthly mortgage payments, and have the comfort and security of knowing your interest rate and payment are fixed for life.
These advantages of the FHA loan program have made it one of the best options for most first time home buyers as well as move-up home buyers. You do not have to be a first time buyer to obtain a FHA loan, anyone may use a FHA loan as long as you do not have more than one FHA insured loan at any one time.
