FHA Offers Mortgage Aid

WASHINGTON – The Federal Housing Administration this week unveiled a program to help struggling homeowners avoid foreclosure after the rates on their adjustable rate mortgages rise. The FHA Secure program will allow homeowners who have missed a payment after their ARMs reset to refinance their mortgage with the FHA at a lower rate. Introduction of the program comes at a time when as many as 3 million ARMs are expected to be reset to higher rates within the next year. To qualify for FHA Secure, borrowers must have a history of on-time mortgage payments before rates were reset higher, a steady work history and sufficient income. Interest rates on the existing mortgage must be reset between June 2005 and December 2009 and the borrower must have at least 3% cash or equity in the home.