One of my former clients e-mailed this morning and asked whether the new FHASecure loan program would be appropriate for her to use in refinancing her ARM. I expect that many Realtors will get similar questions from clients who've purchased homes with them as this new program gets more exposure in the media. And it WILL get more exposure as politicians try to convince the public that steps are being taken to alleviate the "mortgage mess".
This program will help a few people but will not be the silver bullet that solves all problems. In fact, most people who are in trouble with their ARM loans will not even qualify for the program. In the case of my client mentioned above, she does not need, nor does she even qualify for the program because her loan has not started to adjust (as required by the current guidelines). In addition, as is the case with all FHA programs, this one carries upfront mortgage insurance plus a monthly ongoing mortgage insurance. My client is not currently paying mortgage insurance of any kind so this loan would actually increase her monthly housing expenses.
In addition to being exposed to the media coverage of this loan, homeowners are going to get all sorts of direct mail and telephone solicitations offering refinances. As a mortgage consultant, I continue to take steps to ensure that the clients who trust me are not "taken" by people who are just trying to make a quick dollar. This loan, while being salvation for a few, will not be appropriate for most people. It's best to talk with a trusted mortgage expert about your specific situation for advice in this matter.
Mickey Carlton
Mortgage Consultant with Thomas Mortgage
(a trusted vendor of ViewThisOrlandoHome.com)
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