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What is FHA Secure? Who does this program help?

“FHA Secure is designed for families who are good borrowers but were steered into high-costloans with teaser rates,” said Assistant Secretary for Housing-FHA Commissioner Brian Montgomery.

“To qualify for FHA Secure, eligible homeowners must meet the following five criteria:
1) A history of on-time mortgage payments before the borrower’s teaser rates expired and loans reset;
2) Interest rates must have or will reset between June 2005 and December 2009;
3) Three percent cash or equity in the home;
4) A sustained history of employment; and
5) Sufficient income to make the mortgage payment.”

“Under the new FHA Secure 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. (Source – HUD news release HUD No. 07-123)”

JUMBO MORTGAGE LIMITS CHANGE

The current economic stimulus plan for Housing is set to adjust the conforming loan limits from $417,000 to $625,000 until December 31st, 2008. This will allow many Homeowners in non-conventional loans to refinance to much better terms. Also, for Homeowners located in markets where $600,000 doesn’t get you as much as it used to, this will provide an excellent opportunity to purchase and get a low fixed-rate for the long-haul.

Is now a good time to purchase?

Historically speaking…Yes. Try to find a time in history when home prices were falling and interest rates were doing so as well. Generally, when rates go down, prices will increase. This rare situation provides and excellent opportunity for anyone who doesn’t own a home to borrow cheap and purchase cheap at the same time. With all the changes being made to help increase Homeownership across the country, this could literally be the best time in history to purchase (all things considered).

Conclusion:

What we have here is an incredibly exciting time in an industry that’s notoriously boring. The stock market is extremely volatile, the bond market is extremely volatile and therefore home loan rates are extremely volatile. Choosing the right Lender is the most important part of purchasing. If you find the right one, they will be able to time the lock properly and save you tons of money. Timing is obviously sensitive with changing rates and market fluxation. Now more than ever the Federal Government has put people in the position to make the most of their home loan.

For a quick debt analysis/personal FHA breakdown call our toll free number or visit us online.

Derrick B. Evens, President
Benchmark Mortgage
“Setting the Industry Standard”
1-888-222-2931
www.NationsTopLender.com