New FHA Loan Programs for People LATE ON THEIR MORTGAGES

Effective July 19, the FHA will expand the FHA Secure program twofold:

• People  with ARMs (adjustable-rate mortgage loans) who were late on two mortgage payments in a row, or twice in the last 12 months. FHA will require a 97 percent loan-to-value (LTV) ratio for these borrowers to refinance into a government-backed loan -- which in many cases would require lenders to write down some principal.
• Borrowers with ARMs (adjustable-rate mortgage loans) who were late on three mortgage payments in a row, or three different times in the last  12 months; the FHA will only go a 90 percent LTV for these borrowers.

It is estimated that FHASecure has helped 150,000 borrowers refinance since the program was launched and that these new guidelines will help as many as 500,000 homeowners.