We wanted to update you on a recent success of ours for a family in our client base. The FHA Secure has been put into place to allow people who have gotten behind on their mortgages as a direct result of an adjustment in their rate that made their payment unaffordable. It is not an easy loan to get approved. I have talked to and coached several loan officers with our mortgage bank on how to get their FHA Secure loans approved. My branch remains the consistent leader in these difficult loans.
This family had an adjustable rate mortgage that adjusted and caused them to get behind on their payments. They had even gone so far to attempt and complete a loan modification. The problem with the loan modification is that it doesn’t fix their rate permanently, but it remains an adjustable rate mortgage. Your rate and payment are lowered, so temporarily you get a band-aid for a broken leg. Many lenders don’t even allow their clients to modify their loans.
So the family lives in this house and the husband who even had health issues and isn’t supposed to work, has gone back to work. Every penny goes to their payment which went as high as $2,500 per month for a $235,000 home loan. That is way too high. The FHA Secure will drop their payment to just over $1,800 and put them into an FHA mortgage. They will start with a clean slate on mortgage payments and be eligible to qualify for a lower normal FHA refinance here soon and lower their payment even more.
The challenges we faced were many in numbers. As an example we needed a co-borrower to be added to the loan. Mind you the co-borrower has to live in the house to be eligible for an FHA Secure. The co-borrower doesn’t use his credit, so we had to get verification on alternative credit to qualify him for the mortgage. This is just one obstacle we overcame on this loan.
Our ability to get this loan approved and closed comes from a deep understanding of FHA underwriting guidelines, compassion for our clients, and desire to prove underwriter’s wrong at times.
We have this loan approved after a long path of some thorns and frustrations to the borrower. You see in a typical refinance you are used to qualifying and closing on it , in about 3 weeks. With an FHA Secure you are overcoming normal underwriting guidelines, with an abnormal situation. You have to document and supply the necessary paperwork to support your case as to how the adjustment in payment caused you to get behind. You also need a strong FHA lender who will know how to get your loan packaged and present to an underwriter why your loan should be approved.
If you have a situation where your loan was on time, and as a result of your adjustment, your payment became too high to afford, you may be a candidate for an FHA Secure. Make sure you call me at 303-779-0591 ext 101 and tell me your situation.