FHA Refinance Mortgage Loan - FHA Changes - Too Little, Too Late for Many Homeowners?

If you are a homeowner who has been taking a financial beating because your interest rates are jumping all over the place then these changes may be a lifeline for you. The federal housing authority (FHA) has finally made some long overdue changes to assist homeowners that are in distress because of increasing adjustable rate mortgage payments.

The notification was recently sent out and had some very specific language, but also had some vague language that will ultimately be translated by FHA trained underwriters.

The general idea is to enable homeowners to refinance various types of adjustable rate mortgages that have recently reset. The major benefit is to allow homeowners to refinance mortgages, that due to the increased mortgage payment that followed reset have become delinquent.

Here are some of the major highlights:

1. The program is only available until December 31st, 2008.
2. Your mortgage must be a non-FHA adjustable mortgage that has already reset or increased.
3. If you have fallen behind on your mortgage due to the increase in the payment since it started adjusting you can still qualify.
4. Your mortgage payment must show that the 6 month's prior to your mortgage payment changing you had on-time mortgage payment history.
5. If there is sufficient equity in the home FHA will insure mortgages that include missed mortgage payments.
6. If the loan amount that you need exceeds FHA mortgage amount limits or LTV limits then you may qualify for a second mortgage.

While, there are many good things about the changes there are some disadvantages for many homeowners. The first disadvantage that has yet to be seen is to actually get the strict FHA underwriters to approve these loans that look different than the cookie cutter format that they are used to seeing. I guess we will just have to wait and see what happens.

Secondly; many homeowners who have suffered rising payments and have already been served notice of defaults or foreclosure notices this lifeline has come too late and does not offer any additional hope.

For complete list of FHA changes that could affect your refinance for your adjustable rate home mortgage into a fixed FHA rate mortgage click FHA Mortgage Guideline Changes

Author Chris Rivers, a Connecticut FHA Lender, specializes in offering low FHA interest rates for Connecticut refinance mortgages even if you have late payments on your mortgage. Also be sure to get your FREE list of Connecticut mortgage lenders for homeowners with mortgage rates and low, bad or no credit

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