If you are past due on your mortgage loan because the interest rate recently adjusted, there still may be some good news after all. The FHA home lending program just released the "FHA Secure Loan" that ignores credit scores and makes an exception for late mortgage payments if your payment history was good prior to the rate adjusting.

Many Homeowners are cashing in by refinancing their existing HELOC into a fixed rate 2nd mortgage. Virginia mortgage lenders are reporting that hundreds of thousands of homeowners are scheduled to have the mortgage payment adjust in 2007 and 2008.

Unfortunately many consumers will put off refinancing waiting for market conditions to improve and offer better interest rates for refinancing. Mortgage broker Bryan Wilson says the rising popularity of the 2nd mortgage is rooted from Americans clinging to mortgages rates they secured during the recent "refi Boom" that saw record low rates.

Consumers took advantage with 1st mortgages locking these low rates that are worth keeping. So now when these consumers need cash second mortgages have become appealing because they can keep their low rate first mortgage intact.

2nd Mortgage Case Study: Our Case study notes Mona Counts, a nurse who founded an Appalachian clinic financed by a second mortgage on her home.

This has become the primary care center of Mount Morris & services over 5,000 patients in one of the lowest income areas of Appalachian Pennsylvania, Virginia and West Virginia.

Home financing has become more complex with all of the new loan programs, so it is imperative that you speak with an experienced loan officer who understands the market and your personal financial goals.

VA State Facts

Virginia Homeownership rate 68.1%
For more information please visit commerce.gov/states/virginia.html

FHA home loans provide competitive 30-year fixed interest rate terms. FHA loans are offered up to 97% rate and term or 95% for refinancing terms with cash out or debt consolidation.

Many borrowers have suffered financially because their variable mortgage rate has been increasing. Unfortunately many homeowners do not qualify for conventional refinancing because guidelines have tightened and property values have deflated. The FHA Secure give borrowers another opportunity to refinance into a fixed rate loan.