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Avoid Foreclosure with the FHA Secure Loan

Author: GregLietz Total views: 2 Word Count: 709

The recent rise in both mortgage rates and the price of gas has affected all areas of the economy and as a result many people have discovered that they are in financial trouble. In fact, more and more people are finding themselves on the fast track to foreclosure on their home. Those with adjustable-rate mortgages are struggling when it comes to making regular mortgage payments, but even in these difficult times, there are new choices at hand to help those trying to avoid foreclosure, and one of these is the FHA Secure Loan.

News of the launch of the new FHA Secure Loan, designed to assist homeowners avoid missing payments, was announced by President Bush towards the end of October, 2007. The loan, a refinancing product aimed at people who are struggling with increased mortgage repayments, requires escrow for both taxes and insurance and offers first class help for those ultimately facing foreclosure on their home.

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 - FHASecure also offers homeowners the benefit of no prepayment penalties. Of course, other mortgages are offered that do include prepayment penalties, but this is not one of them. Because the FHA is fully aware that people are already struggling to make payments, penalties will be avoided so that homeowners can not only skip this particular hardship, but they are also assured they will not be penalized for paying off their mortgages 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.

FHA Secure Loan - Criteria To Be Met

The FHA Secure Loan is not suitable for everyone and it is important to note that certain criteria will have to be met in order to qualify for the loan. Here are a few of the requirements needed to secure the loan.

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. In order to qualify for the loan the homeowner must show that their current interest rates have been reset since June, 2005 or that such resetting will occur prior to December 2009.

When all is said and done, the FHA Secure Loan will be able to provide much-needed relief for those who have been responsible homeowners and mortgage payers in the past and whose problems stem from the current market conditions and such vagaries as the adjustable-rate mortgage. FHASecure will likely bring more liquidity to a mortgage market that has struggled mightily within the past year. In the near future, it is also likely that other lenders will offer similar loans. Therefore, if you are in danger of foreclosure, the FHA Secure Loan may just save your home and allow you to reestablish a secure foundation once again.

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About the Author

Home Loan help from the mortgage information website Home Mortgage Financing.com. Visit Home Mortgage Financing.com to learn about or watch videos about a loan like an FHA Secure Loan.

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