FHA SECURE refinances for loans that are two or three months behind

Effective July 19, the FHA will expand the FHA Secure program twofold:

• People  with ARMs (adjustable-rate mortgage loans) who were late on two mortgage payments in a row, or twice in the last 12 months will be able to get a 97 percent loan-to-value (LTV) ratio to refinance into a government-backed loan.

• Borrowers with ARMs (adjustable-rate mortgage loans) who were late on three mortgage payments in a row, or three different times in the last  12 months; the FHA will only go a 90 percent LTV for these borrowers.

It is estimated that FHASecure has helped 150,000 borrowers refinance since the program was launched and that these new guidelines will help as many as 500,000 homeowners.