FHASecure Questions and Answers

How far behind can you be on a mortgage to qualify? What about more than 90 days?

There isn’t a limit on how far behind you can be on your mortgage or how many payments you’ve missed. Whether you’re current, one month behind or multiple payments behind, the amount you can refinance will depend on the value of your property and how much you owe and if your current lender, or another eligible source, is willing to take back a second mortgage or write of the remaining balance to help off set the gap between what is owed and your home’s value.

Must I be delinquent, and for a certain period of time, in order to be eligible for FHASecure?

No, and FHA encourages homeowners facing reset to refinance their mortgage before they fall behind on.

I have an interest-only mortgage. Am I eligible for FHASecure?

So long as you are current on your mortgage, you are eligible for an FHASecure refinance. If you are delinquent, the default must have been due to the payment shock of an interest rate reset or, in the case of an Option ARM, the “recasting” of the mortgage.

Are there any programs for people already in foreclosure?

Government assistance may be available in some cases.

What if I have a prepayment penalty and other refinancing costs and there isn’t enough equity in my home for me to refinance?

If you do not have sufficient equity in your home to add your prepayment penalty and/or other refinancing costs into your new FHASecure mortgage, then you should ask your lender to consider a short payoff on your existing loan. Offering either of these options is at the discretion of the lender.

What if the average home price is above the FHA loan limit for my area? Are the FHA loan limits changing for this program?

FHA’s geographical loan limits and how much it can insure are established by law. Although the FHASecure mortgage cannot exceed those loan limits, when a lender is willing to combine a first and second mortgage, the amount of the second can exceed the maximum loan limit for your area as long as the first does not exceed FHA guidelines.

If I have first and second mortgages can both loans be included in FHASecure?

Yes, but only if the combined amount is within the FHA geographical loan limit. If the combined amount exceeds the FHASecure loan limit and/or the loan-to value limit, your lender could offer you a second mortgage to make up the difference.

How can FHA help homeowners stay in their homes?

FHASecure gives homeowners with non-FHA adjustable rate mortgages (ARMs), current or delinquent and regardless of reset status, the ability to refinance into a FHASecure insured mortgage. With FHASecure, the lender will not automatically disqualify you because you are delinquent on your loan.

Why should I consider refinancing into a FHA insured mortgage?

FHA insured mortgages do not allow for prepayment penalties, teaser rates or balloon payments. They are offered at market rate with terms up to 30 years and are fully amortized, meaning that you pay towards principal and interest every month.