Does FHA have a refinance program that will help borrowers who have high cost adjustable rate mortgages where the interest rate has recently reset?
Under the new “FHASecure” program, FHA will allow families with acceptable credit histories who had been making timely mortgage payments before the interest rate on their adjustable rate mortgages reset-but are now in default-to qualify for refinancing to an FHA mortgage. The FHASecure program will operate under the same safe guidelines as FHA’s existing mortgage insurance program. Eligible homeowners will be required to meet strict underwriting guidelines and pay a mortgage insurance premium, which offsets the risk to FHA’s insurance fund.
