New Program FHASecure to Help Borrowers Caught Up in Mortgage Crisis

Some good news came today--new FHA program, FHASecure, to help homeowners who are in the throes of delinquency that resulted from the current mortgage crisis:

"The FHASecure plan is designed to prevent foreclosures among homeowners who fell behind because the rates went up on their adjustable-rate mortgages. About 60,000 "delinquent-yet-creditworthy" mortgage borrowers will be able to refinance into FHA-insured home loans in the next year or so, an official with the Federal Housing Administration says."

(Source: Bankrate.com)

Basic things to know about the new FHASecure program:

1. The program is available only to borrowers who made all their payments on time during the six months before the ARM rate was adjusted upward. The definitition of "on time," according to FHA guidelines is less than 30 days late.

2. According to the article, "Borrowers can get FHASecure loans even if they are up to six months behind on the payments on their non-FHA ARMs. But borrowers have to prove that they fell behind because of the rate reset and not for another reason, such as a job layoff."

3. FHA has maximum loan limits, which can be found here: FHA Loan Limit Finder

Read full article for more information about FHASecure.