When you are in the market for a home loan it is exciting to see an offer for a $200,000 mortgage for only $700 per month! The problem is that these rates dont last for long. Many people have been lured into taking out a mortgage to purchase a home because of teaser rates like these. With these types of offers the mortgage company or broker will offer you a great rate to begin, but the catch is that the rate increases after a specified period of time. Like adjustable rate mortgages, the interest rate starts out low, and then skyrockets to the point where the homeowner could be paying close to double their original mortgage payment amount every month. This has caused many foreclosures. In order to help homeowners who are stuck into these types of bait and switch mortgage contracts, the FHA has a new loan program called FHASecure. This program offers current homeowners the chance to refinance their high interest loans into lower more affordable mortgages. The FHA has always worked towards lowering foreclosure rates to help Americans keep their homes in times of crisis and now they are offering these secure loans to offer Americans relief from predatory lending practices. The following is a list of requirements the FHA has for people to qualify for a FHASecure mortgage refinance loan: You must make enough money to qualify for the refinance and make the mortgage payment based on FHA income standards. You must have a history of steady employment. You are currently delinquent on your mortgage payments. You must currently have an adjustable rate mortgage where the initial low interest rate has expired and is currently increasing or could increase in the future. You must have a credit history that shows that your payments were on time before the interest rate began to increase to unaffordable levels. When considering your application for an FHASecure mortgage refinance, you must also qualify for the loan based on the FHA lender requirements with the exception of late mortgage payments after the interest rate became adjustable. For more information on FHASecure loans contact Mortgage Loan Place today.
Use our FHA Guide to find answers to all questions related to FHA loan.