BUSH ADMINISTRATION TO HELP NEARLY
ONE-QUARTER OF A
MILLION HOMEOWNERS REFINANCE, KEEP THEIR HOMES
FHA
to implement new “FHASecure” refinancing product
Don't become a Las Vegas
foreclosure statistic! President
George W. Bush today (08/31/07) announced
that HUD's Federal Housing Administration (FHA) will help an
estimated 240,000 families avoid foreclosure by enhancing its
refinancing program effective immediately. Under the new
FHASecure
plan, FHA will allow families with strong credit histories who had
been making timely mortgage payments before their loans reset-but
are now in default-to qualify for refinancing…
FHASecure Initiative information for HUD Housing Counseling
Agencies:
The
Federal Housing Administration (FHA) is pleased to announce a new
initiative that will enable homeowners to refinance various types of
adjustable rate mortgages (ARMs) that have recently “reset.”
Under FHASecure, borrowers that are delinquent on their mortgages as
a result of interest rate resets will now be able to refinance using
an FHA-insured mortgage. In many cases homeowners may be permitted
to include mortgage payment arrearages into the new loan amount,
subject to existing geographical mortgage limits and the
loan-to-value limit shown below. Before today, only borrowers who
were current on their existing loan were allowed to re-finance into
an FHA-insured mortgage.
Highlights of the FHASecure Initiative:
1.
The mortgage being refinanced must be a non-FHA ARM that has reset.
2.
The mortgagor’s payment history on the non-FHA ARM must show that,
prior to the reset of the mortgage, the mortgagor was current in
making the monthly mortgage payments.
3.
If there is sufficient equity in the home, under additional
eligibility instructions provided below, FHA will insure mortgages
that include missed mortgage payments.
4.
Under certain conditions explained below, 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), 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.
5.
Lenders must determine, as part of the underwriting process, that
the reset of the non-FHA ARM monthly payments caused the mortgagor’s
inability to make the monthly payments and that the mortgagor has
sufficient income and resources to make the monthly payments under
the new FHA-insured refinancing mortgage.
Additional Information about the FHASecure Initiative:
What
May be Included in the FHASecure Mortgage Amount: FHA will permit
the inclusion of the existing first lien, any purchase money second
mortgage, closing costs, prepaid expenses, discount points,
prepayment penalties, and late charges. FHA will also permit
arrearages (principal, interest, taxes and insurance) to be added
into the new loan amount.
Subordinate Financing under the FHASecure Initiative: If the new
maximum FHA loan is not enough to pay off the existing first lien,
closing costs and arrearages, the lender may execute a second lien
at closing to pay the difference. The combined amount of the
FHASecure first mortgage and any subordinate lien may exceed the
applicable FHA loan-to-value ratio and geographical maximum mortgage
amount. If payments on the second are required, they must be
included in qualifying the borrower. If payments are deferred, they
must be so for no less than 36 months to not be considered in the
qualifying ratios.
If you need help refinancing
your Las Vegas home mortgage,
please call us at 702-524-7216 for more information.
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