Chicago Illinois Home Mortgage Lender-FHASecure FAQ

1. How far behind can you be on a mortgage to qualify? What about more than 90 days?

There isn’t a limit on how far behind you can be on your mortgage or how many payments you’ve
missed. Whether you’re one month behind or multiple payments behind, the amount you can
refinance will depend on the value of your property and how much you owe and if the lender, or
another eligible source, is willing to take back a second mortgage to help bridge the gap between
what is owed and your home’s value.

2. Must I be delinquent, and for a certain period of time, in order to be eligible for
FHASecure?

Although FHA Secure is limited to borrowers who are delinquent, if you are current on your
mortgage, you can still refinance into a standard FHA insured mortgage and, if willing, the lender
can offer a second mortgage to help bridge the gap between what is owed and your home’s value.
FHA encourages homeowners facing reset to refinance before they fall behind on their mortgage.

3. I have a fixed rate mortgage and have fallen on bad times. What about me?

Homeowners facing financial difficulties and unable to make their mortgage payments are strongly
encouraged to contact their lender. Many lenders offer assistance to their borrowers to help them
bring their mortgage current. Homeowners may also want to contact a HUD-approved housing
counseling agency to find out about programs that may be able to assist them, especially if
communication with the lender has broken down. To find a HUD-approved housing counseling
agency, please call 1-800-569-4287

4. I have an interest-only mortgage. Am I eligible for FHASecure?

If your interest-only mortgage is also an adjustable rate mortgage, then it is eligible for
FHASecure. At this time, interest-only fixed rate non-FHA mortgages or such mortgages with
buydown features incorporated into the interest rate or payment options are not eligible. For now,
FHA is keeping the focus for FHASecure on adjustable rate mortgages but may consider adding
other types of non-FHA mortgages in the future.

5. Are there any programs for people already in foreclosure?

It is possible that FHASecure may help homeowners already in foreclosure but each situation is
unique and depends upon the value of your home and how much your owe, and if the lender is
willing to offer a second mortgage. Homeowners facing foreclosure are strongly encouraged to talk
with their lenders, possibly with the assistance of a HUD-approved housing counseling agency, to
determine the best course of action.    To find a HUD-approved housing counseling agency, please
call 1-800-569-4287

PAYING OFF YOUR MORTGAGE(s) and YOUR HOME’S VALUE

6. What if I have a prepayment penalty and other refinancing costs and there isn’t enough
equity in my home for me to refinance?

If you do not have sufficient equity in your home to add your prepayment penalty and/or other
refinancing costs into your new FHA mortgage, then you should ask your lender to consider a
second mortgage to pay the difference. Offering a second mortgage is at the discretion of the
lender.

7. What if the average home price is above the FHA loan limit for my area. Are the FHA
loan limits changing for this program?

FHA’s geographical loan limits and how much it can insure are established by law. Although the
FHA insured mortgage cannot exceed those loan limits, when a lender is willing to combine a first
and second mortgage, the amount of the second could exceed the maximum loan limit for your
area.

8. Does it matter that the value of my home is now less than what I still owe?

Not to FHA but the mortgage lender considering the refinance would have to be willing to accept a
short payoff on the existing loan OR to hold a second mortgage to make up the difference needed
to pay off the existing mortgage and the home’s value.

9. If I have first and second mortgages can both loans be included in FHASecure?

Yes, but only if the combined amount is within the FHA geographical loan limit. If the combined
amount exceeds the FHA loan limit and/or the loan-to value limit, your lender could offer you a
second mortgage to make up the difference.

GENERAL

10. How can FHA help homeowners stay in their homes?

FHASecure gives homeowners with non-FHA adjustable rate mortgages (ARMs) that have had an
interest rate reset the ability to refinance into a FHA insured mortgage. To be eligible,
homeowners must have made their mortgage payment within the month due for the six months
prior to their loan resetting, and be delinquent on their mortgage as a result of the reset.

With FHASecure, the lender will not automatically disqualify you because you are delinquent on
your loan, and the lender may offer you a second mortgage to make up the difference between the
value of your property and what you owe, including standard refinancing costs. For homeowners
who are current on their mortgages and who have or will have an interest rate reset, FHA offers
refinancing programs that also permit the lender to offer a second mortgage to make up the
difference between your property’s value and what you owe.

11. Why should I consider refinancing into a FHA insured mortgage?

FHA insured mortgages do not allow for prepayment penalties, teaser rates or balloon payments.
They are offered at market rate with terms up to 30 years and are fully amortized, meaning that
you pay towards principal and interest every month.

12. Is this program going to help people who shouldn’t have gotten a home loan in the first
place?

People will still have to qualify for a FHA insured mortgage. Unfortunately, those who shouldn’t
have gotten a home loan in the first place will not be able to qualify for FHASecure or other FHA
refinancing options. They should contact their lender or a HUD-approved housing counseling
agency for assistance. To find a housing counseling agency, homeowners can call 1-800-569-
4287

13. If this program won’t help everyone, why is FHA making it available?

FHA recognizes that foreclosures and vacant properties affect home values, contribute to
neighborhood decline and cost local governments due to additional services and lost revenues.
FHA is offering this program to help prevent that type of negative impact on a community.

14. What is this program going to cost taxpayers?

Because the borrower pays the FHA mortgage insurance premium, taxpayers do not pay for
FHASecure or other FHA programs. FHA borrowers pay their own way, and potentially avoid
foreclosures that contribute to neighborhood decline, property depreciation and decreased
revenues to the locality.

15. Does this program help responsible people who pay their bills on time?

Any homeowner who is current on their mortgage can refinance to a FHA insured
loan at any time if it makes financial sense for them to do so. And for those
homeowners with non-FHA adjustable rate mortgages who are current but owe
more than their home is worth, it is now possible for them to refinance into a more
affordable FHA insured mortgage and the lender may execute a second mortgage
at closing to pay the difference.

16. Why isn’t FHA going after the lenders who approved these types of loans in the first
place?

FHA was established to insure mortgages. It does not have the authority to regulate transactions
that do not involve FHA financing.

If you are concerned about your conventional adjustable rate loan that is going to reset,
Call Debra Sineni at 847-321-0814 or email at loans@debrasineni.com
to determine if the Federal Housing Administration can help you now.

FHASecure Frequently Asked Questions

Benchmark Mortgage | 1750 E. Golf Rd., Suite 310 | Schaumburg. IL 60173
Illinois Residential Mortgage Licensee

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