"FHASecure" Loan Program - The Federal Housing Administration will be installing a new program soon known as the "FHASecure" loan. This program is designed to refinance consumers who have fallen behind on Subprime ARM loans due to recent adjustments in the rate. The "Fhasecure" loan will help consumers keep their homes. For more information about this program, contact Brenda Puckett at 770-634-4315.

For more information and FAQ's on Bush's FHA Secure you can go to the FHA's Website Directly at

http://www.fha.gov/about/fhasindqa.cfm

For a copy of the text of the document go to

www.fha.gov/reference/ml2007/07-11ml.doc

One of the eligibility requirement for FHA-Secure is that the mortgage loan being refinanced has to be a non-FHA ARM (adjustable rate mortgage) loan.

The FHASecure loan program will finance borrowers up to a 97.75% Loan to value. Up to 6 months past due mortgage payments may be included in the loan amount if the borrower qualifies.

A new appraisal is ordered for the property for an FHASecure loan program. The new appraisal for the Fhasecure loan should adhere to FHA guidelines.

The main benefit of the FHASecure loan program is getting consumers out of adjustable rate loan programs they cannot afford. The FHASecure loan will be for a fixed rate.

The FHAsecure loan program was created not as a bailout for mortgage lending institutions, but rather as a tool to help consumers caught in a jam. Over 2 trillion dollars of mortgages are due to reset in 2008, according to some analysts.

There are specific criteria that must be met in order to qualify for FHASecure:

1. First and foremost, you must have a history of on-time mortgage payments before your teaser rate expired -- which means you must have a decent credit history.

2. Your interest rate must have reset after June 2005 but before December 2009.

3. You must have at least 3 percent cash or equity in your home.

4. You must have a sustained history of employment.

5. You must have sufficient income to make your mortgage payments.

HUD estimates the FHA will refinance over 100,000 subprime borrowers into FHA loans by the end of this fiscal year, which ends Sept. 30. And the FHA could refinance another 160,000 subprime borrowers in FY 2008 without any changes to its program.

The FHA secure program is a limited time offer designed to assist borrowers who refinance prior to December 2008, and while there is always a chance that the deadline may be extended, borrowers in need of FHA secure refinance loans would be well served to determine whether or not they qualify for the program by calling 678-367-3734 today.

Under certain conditions, FHA will insure first mortgages where (1) the existing note holder writes off the amount of indebtedness that cannot be refinanced into the FHA insured mortgage; or (2) either the FHA-approved lender making the new mortgage or the existing note holder may take back a second lien that includes closing costs, arrearages or previous secondary financing if the indebtedness exceeds FHA prescribed LTV and maximum mortgage amount limits.

FHASecure Loans are excellent choices for homeowners who are great borrowers but were misguided into high-cost loans with teaser rates. The FHASecure loans will bring liquidity into the mortgage market and allow more money to pooled and securitized with Ginnie Mae.

FHA and VA Loans - FHA and VA loans are special programs backed by the government. They require little to no down payment and are designed to get first-time homebuyers into homes. Rates are often lower than other loan programs.

VA Loans are especially beneficial for purchases. Due to the VA Funding fee (typically 3% of the loan), ask your mortgage professional if a VA Loan is right for you in the case of a refinance.

Even in the rare situations where subprime loans are still available, rates are no longer comparable to FHA loans - even when you consider the mortgage insurance added to the payment each month. Most importantly, no subprime loan program has the streamline refinance program offered on FHA loans. As long as you are up to date on your payments, an FHA loan can be refinanced without having to requalify. Sometimes there is not even a requirement for an appraisal.

With the tightening of credit standards recently, Government Insured loans such as FHA and VA loans are still readily available. Many of the subprime companies that offered alternatives to FHA or VA financing have gone bankrupt. Call Carl Pruitt, a Government financing specialist today at 678-367-3734.

FHA and VA loans have a distinct advantage over subprime loans which were readily available over the past few years. Namely, they are still available, and will continue to be available and to improve as time goes on, as they are true government loan programs which do not rely on Wall Street for their funding.

In today's market, many lenders offer mortgage programs that are at least as attractive as the FHA/VA loans. So even if you don't qualify for one of these programs, your mortgage professional can likely offer you a financing option with very similar, if not better, terms.

VA loans are only available to those veterans who receive their elligibility certificate from the Veterans Administration.

Although these loans offer low-down payment programs and other assistance, the interest rates are typicallly non-competitive with Fannie Mae conforming loans. VA loans are also often limited in the amount that a person can borrow.

An FHA loan allows you to buy a house with as little as 3% down, instead of the higher percentages that may be required by many conventional loans. Taking advantage of the FHA loan program is a great way for first time buyers to buy a home.

Georgia Residential Mortgage Licensee 11486