The fha secured loan program helps homeowners heading into a fixed rate and getting rid out of foreclosure. Learn more about fha secured loan program.
The loan limits to finance on FHA differ based on the county. You can easily find the boundaries through the Internet or you can contact the FHA approved lender for more information about the limitations. The FHA is not anxious with the value of your equity or home.
It is possible to use a mortgage to finance the home with the fha secured loan program if you want to owe more than the value of your home. Your previous lender should be ready for a short-term pay off, or your current lender must be ready to secure a second mortgage. The loan amount of refinancing through the fha secured loan program must be less than the loan limit on your county.
The fha secured loan program was launched by The Federal Housing Administration in 2007. The fha secured loan program is a program that available for homeowners with adjustable rate mortgages (ARM), who are mostly in arrears or delinquent, to refinance mortgages for FHA insured. Home buyers should be based on existing mortgage payments before the variable rate of interest, and must be able to demonstrate that interest rate changes may cause them to become in arrears.
The fha secured loan program is designed for homeowners at the risk of foreclosure because of the ARM’s payments and rates are suddenly increased. The homeowners in the fha secured loan program are mostly having subprime ARM loans.
The requirements to be qualified qualify for refinancing through the FHA secured loan program is:
- Available only for the current payments without late payments during 6 months before reset or refinance.
- Equity in the home at least for 3%.
- Original loan is not an FHA.
- Debt-to-income ratio of less than 43%.
- The remaining loan balance is below the limit for local borrowing.
- Income is sufficient to make payments under the new mortgage.
- Provide a tax return and W-2 federal tax form.
If you have a second mortgage of your home, you will enable the FHA mortgage loan to treat the second mortgage even if you will owe more than your home is worth. Your lender should be ready for signing the subordination agreements, which allows for the second mortgage to keep open in second position.
The fha secured loan program is aimed for securing homeowners who received and facing foreclosure for adjustable rate mortgages because of the new mortgage payments that mostly has risen which make it very hard or even impossible to making monthly payments. This program enables homeowners to pay off the less than six months of late payments on ARM to the new fixed-rate balance. However, it must be proved that homeowners with ARM payment increased, causes them delinquent mortgage payments and not caused by they have no financial liability.
The fha secured loan program has no hidden fees and prepayment penalties. The covering of insurance taxes will be also included in the new loan amount, but there is no loan disbursement for cash money on the fha secured loan program.
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