In Jeopardy of Losing Your House Due to ARM Change?

Eligibility Highlights of the FHASecure Initiative

The FHASecure initiative, which is a temporary program designed to provide refinancing
opportunities to homeowners, requires that the loan application be signed no later
than December 31, 2008.

This initiative is designed to permit homeowners, who previous to their ARM reset,
demonstrated an ability to meet their mortgage obligations, It allows the home owner
the opportunity to refinance into a prime rate FHA insured mortgage.  In many cases,
homeowners may be permitted to include mortgage payment arrearages into the new loan
amount.

If the new maximum FHA loan is not enough to pay off the existing first lien, closing
costs and arrearages, the lender may execute a second lien at closing to pay the
difference.  The combined amount of the FHASecure first mortgage and subordinate lien
may exceed the applicable FHA loan to value ratio and geographical maximum mortgage
amount.

*The mortgage being refinanced must be a non FHA ARM that has reset.

*The mortgagors’ payment history on the non FHA ARM must show that, prior to the rest
of the mortgage, the mortgagor was current in making the monthly mortgage payments.

*Mortgagees must determine, as part of the underwriting process, that the reset of the
non FHA ARM monthly payments caused the mortgagors inability to make the monthly payments
and that the mortgagor has sufficient income and resources to make the monthly payments
under the new FHA insured refinancing mortgage.

*The payment to income ratio and debt to income ratio remains 31 percent and 43 percent, respectively.

*Maximum HFA loan to value ratios
97.75%: For properties with appraised value in excess of $50,000

Call Amy at the Lehigh Valley Office of Prosperity Mortgage for more information. 610-317-1460