Quick Application

First
Last
Email
Phone
Cell
Address
City
State
ZIP
Purpose
Loan Amount

Who's Online

We have 80 guests online

Latest Comments

no comments

Community Login

Mortgage Center News FHASecure Modifications - Substantial Changes to the FHA Program
FHASecure Modifications - Substantial Changes to the FHA Program PDF Print E-mail
Monday, 12 May 2008 18:30
The Federal Housing Administration released massive changes last week to FHASecure, a program launched in August in response to a housing crisis that threatened borrowers of adjustable rate mortgages (ARMs) with foreclosure.

Initially, FHASecure was available only to borrowers who fell into delinquency after lower rates on ARMs reset to higher adjusted rates.

In April, the program was expanded to subprime borrowers who had minimal delinquencies and satisfactory equity or cash positions.

Here is the groundbreaking change: Since the FHA's creation in the Great Depression, all borrowers have been charged the same risk premium. It is 1.5% up-front and .5% per year.

For borrower's who are greater risks could see premiums of 2.25% and .55% annual. This is roughly a $1200 difference in year 1 for a borrower on a $150,000 loan.

Stay tuned as we'll be certain to release updates.
Comments
Search RSS
Only registered users can write comments!

3.26 Copyright (C) 2008 Compojoom.com / Copyright (C) 2007 Alain Georgette / Copyright (C) 2006 Frantisek Hliva. All rights reserved."