FHA Secure Loans: Frequently Asked Questions
What is a FHASecure Loan?
On Friday, August 31, 2007 President Bush announced the FHA Secure Loan Program.
This is a completely new and innovative program to help qualified families avoid foreclosure and will soon be
available to homeowners to help them avoid financial crisis. Until now the FHA has never permitted delinquent
borrowers to qualify for their loan program. However, the new program will help homeowners refinance their exiting, (though
now in default in default loans), if they had a good credit history six months prior to the ARM rate increase.
To qualify for FHA Secure, eligible homeowners must meet the following five
criteria:
- A history of on-time mortgage payments before the borrower's teaser rates expired and loans
reset;
- Interest rates must have or will reset between June 2005 and December 2009;
- Three percent cash or equity in the home;
- A sustained history of employment; and
- Sufficient income to make the mortgage payment.
It seems that the FHA's focus will remain on looking to the good credit profile of applicants
rather than a credit score. And, until now the FHA has not permitted delinquent borrowers to qualify for their loan
program.
The FHA, in the past, have not required a particular minimum credit score, rather they
have focused on one's overall credit profile. To best determine if you qualify for an FHAsecure
loan, you should contact an FHA approved lender.
Again, the agency does not go by credit scores specifically but rather by credit profile or
credit history. That said, premiums will be higher for those approved applicants with a greater credit
risk.
If you qualify, FHA Secure Loans may save your home from foreclosure. And, Your new loan will
have no teaser rates or prepayment penalties.
FHA Secure Loans can be processed by approved lenders only. For a list of FHASecure Loan approved lenders, click here.
FHA Secure Loan Questions
|