“FHASecure has helped more than 100,000 families stay in their homes,” U.S. Housing and Urban Development Secretary Alphonso Jackson said today in a statement on the HUD website.
“Homeowners are cutting their monthly mortgage payments by an average of $400 a month compared to their exotic subprime loans. They no longer have anxiety about finding foreclosure notices in their mailboxes, thanks to the safe mortgage alternative that FHASecure offers.”
During the final quarter of 2007, the FHA said it “helped pump nearly $45 billion of much-needed mortgage activity into the housing market,” including more than $13 billion in FHASecure loans.
“Over the past five months, FHASecure has helped about 500 families a day close on their new government-backed loans.”
Jackson added that the FHASecure program is on pace to offer refinancing to 300,000 families by the end of 2008.
FHASecure has a series of strict requirements, including a minimum of 3% cash or equity in the home (unless the mortgage lender is willing to write off the difference), a demonstrable history of on-time payments, and sufficient income and assets to make the new monthly mortgage payment.