FHA SECURE GUIDLINES

This Help is broken into 2 parts:

Part 1 is the loan you must qualify for.

THE LOAN PROGRAM

The White House announced on April 9th 2008 that they are taking action to provide additional assistance for subprime homeowners where are at risk or have the potential to enter foreclosure. These new guidelines would give FHA much needed flexibility and allow many more people to take advantage of the FHAsecure program which was designed to help homeowners in the first place but had hard to meet guidelines. That is all about to change.

These new FHAsecure guidelines are expected to allow up to half a million Americans a alternative to foreclosure by the end of the year. The Assistant Secretary of House is quoted as saying: “We want to be able to help families who are in the right house, but (in) the wrong mortgage.” This is very true for many American households that are trying to make ends meet in there trying times. These new relaxed guidelines for the FHAsecure loan has the potential to change the lives of hundreds of thousands of homeowners.

To qualify for the new FHAsecure standards you must fall into one of the two following:

Homeowners with ARM mortgages that where late on two consecutive mortgage payments or at two different times over the last 12 months. These homeowners must at least have a 97% Loan to Value (LTV) in order to refinance into this program.
Homeowners with ARM mortgages that where late three consecutive mortgage payments or three different times over the last 12 months. Homeowners that where late three times must have a 90% Loan to Value ratio.

Lenders do have the option to write down the balance to either 97% and 90% respectfully to make FHAsecure refinancing more accessible to more people especially those with 100% LTV. It is encouraged that the banks take these write downs and refinance as many as they can into safe FHAsecure loans, it is however voluntary for the bank to take such a write down to make the loan ratios work. The actual refinance amount will be determined with a qualified FHA appraiser and the ratios are to be calculated with the appraisers findings.

On average people able to refinance into an FHAsecure loan save $400 a month compared to their subprime adjustable ARM mortgage. For many Americans a savings of $400 or more per month can make a very significant positive impact on that homeowners finances.

Part 2 is guidlines to meet if you want the goverment to pay what you are upside down on (your shortfall) when you refinance for 90% of todays value!

THE GOVERMENT CHECK BOOK

FHA Help Now is the proposed name for the new FHA Foreclosure Prevention program which was just signed into law. The new housing legislation calls for the FHA to create this program and have it available by October 1st. The program is expected to insure around $300 billion in new fixed rate loans. Democrats also have just asked lenders to hold off on foreclosures for people who may qualify for the program.

The official guidelines for this program have not yet been written but according to the bill that was just made law the following are likely to be the main points around the guidelines which should be released soon.

The house in question must be your primary residence. Second homes or investment properties are not eligible.
Your mortgage must have been taken out within the time period January 2005 to June 2007.
You must currently have a debt ratio higher then 31% any lower and you are not considered in hardship. Your debt ratio is calculated like this: (Total Monthly Debt Payments / Total Monthly Income)x100
You must also submit proof that you can not afford your current mortgage. Expect to submit your monthly statements for mortgage and any other loans along with paystubs.
Proof that you can afford the new mortgage payment of 90% of the current appraised value of the home. You must be able to comfortable make payments on this amount.
Home equity lines must be paid off or satisfied.
The program is voluntary impart by your bank. They would have to allow you to partake in this refinance program.
Once you met the guidelines for this program you would be refinanced at 90% of the current appraised value of your home, which in most cases would be a substantially lower payment. Also looks like you would have to stay in the home for a specific period of time or give all proceeds to the FHA if you sell early.

ACT NOW!!!