Avoid Foreclosure with the FHA Secure Loan

At the end of October 2006, President Bush was the one to announce that a new FHA Secure Refinance Loan would be launched. It was designed to help homeowners avoid delinquent payments and even foreclosure. When it comes to the new FHASecure product that is now available, basically it is a refinancing product designed to help people who are suffering from higher mortgage payments. This new product requires escrow for both insurance and taxes and will offer excellent assistance for people trying to avoid foreclosure.

Benefits of the FHA Secure Loan

There are a variety of excellent benefits that are now being offered with this new FHA Secure Loan. The following are just a few benefits homeowners can enjoy with the FHA Secure Refinance Mortgage:

Benefit #1 - Foreclosure Prevention - One of the main benefits that homeowners will enjoy with FHA Secure is the ability to prevent foreclosure. After spending years paying on time for their home, it is devastating to even think of losing your home. Those who do have good payment histories in the past can find help with the new FHASecure.

Benefit #2 - No Prepayment Penalties - Another great benefit of the FHA Secure loan for homeowners is that it comes with no prepayment penalties. While there are other mortgages offered that do include penalties for prepayment, this loan will not be one of them. The FHA realizes that the last thing people need is to have more penalties added on to them, so they will never penalize homeowners for paying off their mortgage early.

Benefit #3 - Save Your Credit - Having to foreclose on your home can leave your credit in disaster. Going through a foreclosure can cause you more problems in the future. It can make it difficult to get a new credit card, to purchase another home, and even to rent an apartment to live in. However, with a FHA Secure Refinance Loan you can avoid foreclosure and save your credit.

Criteria for Getting a FHA Secure Loan

It is important to note that the FHA Secure Loan is not for everyone. Those applying for the FHA Secure will have to come up to certain criteria in order to qualify for the loan. The following are the five points of criteria that you must come up to in order to be eligible for the FHA Secure Refinance Mortgage.

1. The first point of criteria that you must meet is a good history of paying your mortgage payments on time in the past; however, the past refers to the time before the previous rates expired and the whole loan was reset.

2. To qualify for the FHA Secure loan, you must also have a history of sustained employment as well, to make sure that you can actually pay off this new loan.

3. Homeowners must also be able to prove that you make enough income to pay the new mortgage payment each month on time.

4. Another point of criteria that you must meet as a homeowner in order to get the new FHA Secure is to at least have 3% of the cash needed, or the equity in the home.

5. Last of all, the homeowner must also be able to prove that their interest rates have been reset after June of 2005, or that they will be reset before December of 2009 in order to qualify for this new loan.

At the end of the day, the FHA Secure Loan is going to provide a much needed break for families who have been good borrowers in the past, but who are having problems now repaying their mortgage. The new FHA Secure is definitely going to help bring more liquidity to a mortgage market that has been suffering in the past year. It is also anticipated that in the near future, there will be other lenders offering these types of loans that are insured by the FHA as well. So, for those who are finding themselves on the brink of foreclosure, the FHA Secure Loan is definitely a lifesaver that may save the day, and a home.