Recently HUD modified the FHASecure loans. See FHA Mortgagee Letter 08-13 and the detailed discussion regarding the expansion of FHASecure:
· To include applicants delinquent on their non-FHA ARMs due to a rate reset or the occurrence of an extenuating circumstance but experienced no more than two 30-day or one 60-day late payment in the 12 months prior to the rate reset or extenuating circumstance that caused the delinquency; or
· To include homeowners delinquent on their non-FHA ARMs due to a rate reset or the occurrence of an extenuating circumstance but experienced no more than one 90-day late payment or no more than three 30-day late payments prior to the rate reset or extenuating circumstance that caused the delinquency provided the loan-to-value on the FHA insured 1st mortgage loans that do not exceed 90%.
· Borrowers delinquent on their interest-only and/or payment option ARMs are not eligible for this expansion: borrowers with these types of mortgages must demonstrate that a rate reset caused the delinquency and that they were making the monthly mortgage payments within the month due during the 6 months prior to the rate reset.
· FHA Secure refinance loans allow borrowers refinancing opportunities with delinquent non-FHA ARMs the Up-front mortgage insurance premium (UFMIP) is set at 2.25% of the base loan amount (loan amount excluding UFMIP) regardless of the loan-to-value (LTV) ratio. For LTV ratios greater than 95% (excluding UFMIP) the Annual premium (collected monthly) is set at .55%.
