The FHASecure Loan is an option for homeowners that have a non-FHA adjustable rate mortgage that they are delinquent on and they wish to refinance in order to get current. With the FHASecure program, the homeowners are able to refinance into an FHA insured loan if they have 3 or less late payments on their current loan in the last 12 months. The loan was designed to help those in trouble be able to keep their home and be better able to afford their mortgage without struggle. Once you have the FHASecure mortgage, however, you are ineligible to streamline refinance your FHA loan – you must obtain an FHA loan with full qualification at least once; after that you are eligible for the streamline program.

Qualifying for the FHASecure Loan

The FHASecure Loan is not hard for homeowners to qualify to obtain. For starters, they can have up to 3 late payments in the last 12 months – there are no other programs that allow this stipulation. The only requirement regarding the late payments is that the homeowner must prove that they were a result of the increased interest rate and not because of any other personal financial reasons. The only exception to the rule is if you are current on your conventional loan at the time you wish to refinance into the FHASecure program – then you do not have to have an adjustable rate mortgage.

The other requirements to get into the FHASecure program include:

• Consistent and dependable income that has been the same for the last 2 years with future dependability
• Single family or one to four unit home with owner occupancy
• FHA LTV limits are in effect
• Late payments on things other than the mortgage should be because the homeowner was making the mortgage payments or at least trying
• 28/41 debt ratios should be adhered to unless there are compensating factors that allow a higher ratio

How to use the Streamline Refinance

In order to qualify for the streamline refinance after taking advantage of the FHASecure loan, you have to qualify for a full FHA loan first. Even though the requirements are basically the same for both programs (standard FHA and FHASecure) with the exception of the late payments, the FHA requires that you have a full FHA loan before using the streamline program. Once you qualify for the streamline program, you only have to meet the following requirements:

• Have on time FHA mortgage payments for the last 12 months with only one late payment, but not within the last 3 months
• Have made at least 6 months’ of payments on the current FHA loan
• Lower your current FHA payment
• The same or lower loan amount; you cannot increase your loan amount

The long and short answer regarding whether you can streamline refinance your FHASecure loan is yes, but in the future. You have to go through the process of fully refinancing your Secure loan before using the streamline program. This can be beneficial for people that secured a higher than normal interest rate on the Secure loan and their original FHA loan. The good news is that once you are eligible for the streamline refinance, you will get a refund of the upfront MIP that you paid as long as you refinance within 3 years of the original FHA loan. The process might seem complicated, but within a few years, you can not only save your home, but get your interest rate as low as possible in order to make your mortgage payment as affordable as possible.