The newly-announced FHASecure Mortgage Program is designed for families who are good borrowers but were steered into high-cost Adjustable Rate Mortgage loans with teaser rates.  Often times, these are subprime loans that if not “fixed” can rapidly adjust and cause borrowers to be unable to make their payments.

To qualify for an FHASecure Mortgage, eligible homeowners must meet the following criteria:

1. The loan must be a non-FHA Adjustable Rate Mortgage.
2. A sustained history of employment.
3. Sufficient income to make the new mortgage payment.
4. A history of on-time mortgage payments “prior” to the borrower’s ARM loan resetting to the higher rate.
5. The Adjustable  interest rate must have either reset or be scheduled to reset between June 2005 and December 2009.
6. Mortgage late payments are allowed after the reset date if they are directly related to your higher loan payment.  In addition, if you are in a mortgage payment plan because of late payments and there is sufficient equity in the home, the late payment amounts can be rolled into the new loan.
7. Second mortgages are possible under certain specific conditions.
8. A minimum of 3% cash or equity in the home.

While the new program will help those borrowers who qualify save their homes, it is obviously not a free ride. It is designed for homeowners who just need help getting out of the scary terms of their current Adjustable Rate Mortgages.

To learn more about the FHASecure Mortgage Program and how it can benefit you if you are in an Adjustable Rate Mortgage contact me today.

                                                                         — Tammy