The recent rise in both mortgage rates and the price of gas has affected all areas of the economy and as a result many people have discovered that they are in financial trouble. In fact, more and more people are finding themselves on the fast track to foreclosure on their home. Those with adjustable-rate mortgages are struggling when it comes to making regular mortgage payments, but even in these difficult times, there are new choices at hand to help those trying to avoid foreclosure, and one of these is the FHA Secure Loan.



News of the launch of the new FHA Secure Loan, designed to assist homeowners avoid missing payments, was announced by President Bush towards the end of October, 2007. The loan, a refinancing product aimed at people who are struggling with increased mortgage repayments, requires escrow for both taxes and insurance and offers first class help for those ultimately facing foreclosure on their home.

Benefits of the FHA Secure Loan

FHASecure offers a variety of benefits, including:

Benefit #1 - Prevention of Foreclosure - One of the most important benefits homeowners can reap with an FHA Secure Loan is the ability to prevent foreclosure. The thought of losing your home after many years of making your mortgage repayments on time is devastating but it does not have to be this way and help is at hand for people with a good payment history.

Benefit #2 - No Prepayment Penalties - Another great benefit of the FHA Secure loan for homeowners is that it comes with no prepayment penalties. While there are other mortgages offered that do include penalties for prepayment, this loan will not be one of them. The FHA realizes that the last thing people need is to have more penalties added on to them, so they will never penalize homeowners for paying off their mortgage early.

Benefit #3 - Save Your Credit - Having to foreclose on your home can leave your credit in disaster. Going through a foreclosure can cause you more problems in the future. It can make it difficult to get a new credit card, to purchase another home, and even to rent an apartment to live in. However, with a FHA Secure Refinance Loan you can avoid foreclosure and save your credit.

Criteria for Getting a FHA Secure Loan

It is important to note that the FHA Secure Loan is not for everyone. Those applying for the FHA Secure will have to come up to certain criteria in order to qualify for the loan. The following are the five points of criteria that you must come up to in order to be eligible for the FHA Secure Refinance Mortgage.

1.The first point of criteria that you must meet is a good history of paying your mortgage payments on time in the past; however, the past refers to the time before the previous rates expired and the whole loan was reset.

2.You must have had consistent employment to qualify for the FHA Secure Loan. This is to ensure that you can pay off this new, FHA Secure Loan.

3.You must provide proof of your income so that it is assured that you can pay your mortgage payment on time each month.

4.Another point of criteria that you must meet as a homeowner in order to get the new FHA Secure is to at least have 3% of the cash needed, or the equity in the home.

5.Last of all, the homeowner must also be able to prove that their interest rates have been reset after June of 2005, or that they will be reset before December of 2009 in order to qualify for this new loan.

The FHA Secure Loan aims to provide a much needed break for borrowers who have been good business for lenders in the past, but due to rates changing, are having problems repaying their mortgage at the present time. The new FHA Secure Loan will inject liquidity into a mortgage market which has been struggling over the past twelve months and similar products insured by the FHA from other lenders are likely to appear on the market in the near future. So, for those finding themselves on the verge of foreclosure, the FHA Secure Loan is the lifeline they have been desperately looking for to save the day, as well as saving their home.