I was happy to see that President Bush was willing to help out the honest and hardworking homeowners who were steered into high-cost loans with teaser rates.
Under the new Secure plan, FHA will allow families with strong credit histories who had been making timely mortgage payments before
their loans reset-but are now in default-to qualify for refinancing.
To be able to qualify for the Secure Plan FHA, homeowners must meet the five criteria requirements:
1. A history of on-time mortgage payments before the borrower's teaser rates expired and loans reset;
2. Interest rates must have or will reset between June 2005 and December 2009;
3. Three percent cash or equity in the home;
4. A sustained history of employment;
5. Sufficient income to make the mortgage payment.
The study states that most of the candidates who will qualify to refinance are first time homeowners and minorities.
