If you have a FHA Mortgage in California with bad credit, you may be worrying about refinancing. Most people who worry about refinancing are concerned about getting set at a much higher rate. Refinancing is possible through FHA Secure, a new FHA mortgage refinancing option started in August 2007 to help homeowners who now are looking at a mortgage default or even a foreclosure. You can refinance your California FHA mortgage with bad credit. It simply takes some persistence and effort, but it can be done.
Begin by gathering all of your information. Quite often when people get into trouble, they start by getting poorly disorganized. Maybe they don’t want to look at bills or statements because they are ashamed they can’t pay them. Or they are scared to look at them. It is time to face them head on. Gather all of the bills and statements that you have and put them together in one place. You’ll need them to talk to someone about an FHA Secure Loan.
The FHA Secure Loan is ideal for someone who is late and/or behind on their mortgage payments. Or if your interest rate has increased and is now causing you to look at the possibility of foreclosure on your home or defaulting on your California mortgage. The FHA Secure Loan can also be an option for those who have minimal to no equity in their homes. This loan permits you to refinance at a competitive rate even if other mortgage lenders have said, “No” to your family. You must meet certain guidelines to qualify for this particular loan.
You must meet particular criteria in order to qualify for this FHA Secure Loan to help your California home. The mortgage interest rate must have reset during June 2005 through December 2009. Your home equity must be at least three percent, or three percent in cash. You need to have a credit history with on-time mortgage payments before your teaser rates expired and the home loan was reset. An employment history during the past two years is also needed. Enough income that you can pay the FHA Secure mortgage payments is also required. Your new mortgage loan amount may not exceed the current FHA loan limits.
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