The FHASecure — Refinancing for current or delinquent borrowers!

The Federal Housing Administration’s FHASecure loan program gives homeowners with non-FHA adjustable rate mortgages (ARMs), current or delinquent and regardless of reset status, the ability to refinance into a FHA insured mortgage. Direct Mortgage offers the FHASecure program and can help you become FHA sponsored if you are not already. 

Benefits of the FHASecure

• Possible lower interest rate & monthly payments
• Refinance into a fixed-rate mortgage
• May include delinquent loan payments in the new mortgage (subject to existing geographical mortgage limits and the loan-to-value limits)
• No pre-payment penalties
• Subordinate financing is permitted – Combined loan value (CLTV) may exceed the applicable FHA loan-to-value ratio and geographical maximum mortgage amount

FHASecure Expansion

The FHASecure eligibility criteria have been expanded.   A summary of changes appears below:

• All  conventional rate and term  refinances (ARM or Fixed) into an FHA loan are required to be done as a FHASecure.
• Conventional refinances into an FHA cash out (more than $500) will be done as a standard FHA
• Upfront MIP is 2.25 if refinancing a delinquent non-FHA ARM; if the LTV is > 95%, the monthly MIP is 0.55.
• Minimum 580 FICO®
• Standard county limits
• Allows a short pay (or write down)
• Allows Lates
• If LTV > 90%, then the following lates prior to rate reset are allowed
• Two 30 days

OR
• One 60 day

• If LTV ≤ 90% then the following lates prior to rate reset are allowed
• One 90 day late

OR
• Three 30 days

**See the Mortgagee Letter 2008-13 for more details**

Learn More About FHA Loans . . .
View a list of our FHA and other loan programs.