Troubled Home Owners welcome new Refinancing Product FHASecure
Toronto, Aug 22, 2007
Kuljit Singh, Accredited Mortgage Professional
On August 31, 2007 President George W. Bush announced that HUD's Federal Housing Administration (FHA) will help an estimated 240,000 families avoid foreclosure by enhancing its refinancing program effective immediately. With the initiation of this new product (FHASecure), FHA will help homeowners who are already in default of their primary residence mortgages. Until now, the FHA would not insure refinanced loans from borrowers who are in default, so this is a substantial change.
To qualify for FHASecure, eligible homeowners must meet the following five criteria:
Apart from the above listed criteria, eligible homeowners will be required to meet stringent underwriting guidelines and pay a mortgage insurance premium, which offsets the risk to FHA's insurance fund at no cost to the taxpayer. To facilitate this plan, Federal Housing Administration will implement risk-based premiums that match the borrower's credit history with the insurance premium they will pay i.e. high risk borrowers pay more. This risk-based pricing structure will begin on January 1, 2008.
Please note, this new product will only be offered by the lenders who are approved by the Federal Housing Administration. If you adjustable Rate Mortgage has reset after June 2005 or is going to reset before December 2009, call your lender and ask if they offer FHA and find out whether you qualify or not.
For more information about this new product or other FHA products, please call 1-800-CALL-FHA or visit www.fha.gov or www.hud.gov. For a complete list of a HUD-approved housing counseling center or your local homeownership center, please visit www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm.
For more information, call Mortgage Alliance AKAL Mortgages
Inc. at (416) 621-1300 or email at info@akalmortgages.com.