Glendale, Arizona Real Estate – FHA Allows Good Credit History Borrowers to Keep Their Homes

The Bush Administration announced that HUD’s Federal Housing Administration’s (FHA) FHASecure plan will permit an estimated 240,000 families, who had been making mortgage payments on time prior to their adjustable rate mortgages (ARMs) resetting, to avoid foreclosure and remain in their homes. Unfortunately, many borrowers are now in default and will not qualify for refinancing. The FHA will also implement a risk-based premium, based on the borrower’s credit rating, for the insurance premiums they pay.

The FHA can help Glendale homeowners with non-FHA ARMs to keep their homes by providing them with the ability to refinance into a FHA insured mortgage. Many Glendale borrowers are faced with the dilemma of not having enough equity in their homes to be able to refinance. This may include not having enough equity to cover prepayment penalties and/or other refinancing fees. The FHASecure plan means that homeowners who had previously become delinquent on their loans, will now qualify for refinancing; and will even be issued a second mortgage, if need be, to make up the difference between the value of the property, what is owed, and miscellaneous costs.

Glendale residents should consider refinancing into a FHA insured mortgage because they permit the borrower to receive a loan at market rate for up to 30 years, fully amortized—payments go towards the principal and interest every month. A positive aspect of these insured mortgages do not allow for balloon, teaser rates, or prepayment penalty payments.

If you currently have first and second mortgages both loans can be included in the FHASecure plan, but only if the total amount of the loans are within the FHA geographical loan limit. If the combined amount does in fact exceed the FHA preset limit, or the loan-to-value limit, a second mortgage can be issued to make up the difference. The geographical loan limit is predetermined by law, which means the FHA insured mortgage will not exceed those limits.

For those who are in danger of losing their real estate in Glendale, the FHASecure loan plan may not only be the best option for keeping your home; but the only option. The FHA works with thousands of lenders who service Glendale to help residents get out of their financial woes. For more information on FHA insured loans, visit the official website for more information and details.