FHA Secure

Created in 2007 under the 2008 Economic Stimulus Package, this program provides emergency relief to homeowners suffering from adjustable mortgages. At the time, the most FHA would lend was $362,250- a far cry from helping most. The good news is that most higher cost counties in California have their FHA limit increased to $729,250. Sacramento,

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Placer and Yuba counties have been increased to $580,000.

You may be eligible for FHA Secure financing if:

• You currently occupy your home as a primary residence
• You are in an adjustable rate mortgage which is currently adjusting
• You have missed no more than 3 mortgage payments since the adjustment

The following will NOT prevent you from obtaining FHA Secure financing:

• Poor credit scores
• Little or no equity*

        *In cases where the new loan would exceed 95% of your home's current value, your current lender would need to agree to a process called Loan Modification to obtain a FHA Secure loan.

The following situations are INELGIBLE for FHA Secure:

• Property is a rental
• Loan amount will exceed FHA county limit.
• Chapter 7 bankruptcy within previous 24 months.
• Chapter 13 with anything less than 12 months perfect pay history.
• Fully documented income is less than needed to qualify for new loan.

FHA Secure loans are highly complex and underwritten with more scrutiny than any other loan. It is important the lender you work with be efficient and highly knowledgeable.