FHA has been around for a while now, it’s just starting to get attention thanks to the media and a political election around the corner. The economic times are shifting towards a recession. This downward spiral is being fueled by a lagging housing sector. The lagging housing sector is thanks to subprime purchases that ended or will end in Foreclosure. FHA loans were around long before subprime was even around.
Many years ago banks, required people to verify assets and prove employment. This may seem like a novel idea to many mortgage brokers, but its true. We are moving back to the old school. Subprime is dead and will never come back. People often think subprime and having financial or credit hiccups as being synonymous. This is not always true. Did you know you can refinance a Chapter 13 plan with an FHA loan? Did you know that if your in and adjustable rate, ONLY FHA will allow the Chapter 13 plan to be left open and refinance the mortgage alone. The economic stimulus bill has saved my homeowners from filing a Chapter 13.
The FHA secure program has allowed people that have been 0x30 on their mortgage, while its fixed, to refinance without penalty for the lates as long the lates are contained to the adjustable period of the loan. Typically the borrower that finds themselves in the precarious situation of an ARM that is about to reset, their only option is file a Chapter 13, or lose the house.President Bush has taken many steps that are progressive to help the lower to middle income borrowers. The Economic Stimulis Bill has helped borrowers in the higher income brackets that may also be facing costly ARM adjustments. FHA loans are the answer for borrowers that have been responsible since filing their chapter 13 plan. You cant be late to your trustee, you cant pay your mortgage late.
FHA is about giving second chances, for responsible borrowers that had a credit issue, this is your savior. For an irresponsible borrower that was given a second chance by filing a Chapter 13, you should have refinanced with me 1 year ago, your program is gone forever(Trust me, it is forever). FHA loans have highly competitive interest rates and LTV’s for Rate and term adjustments to 97.75%.