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- 6 Factors to Know if a Borrower is Qualified for a FHA Secure Refinance Loan
6 Factors to Know if a Borrower is Qualified for a FHA Secure Refinance Loan
- By Scott Tucker
- Published 10/5/2008
- Lead Generation
- Unrated
Scott Tucker
Scott Tucker tells you more on his free audio CD, free e-book, free faxed report, & free telephone seminar, all available for the asking, at http://www.MortgageMarketingGenius.com.
http://www.MortgageMarketingGenius.com
The FHA Secure Refinance program was created in an effort to provide greater help for people who weren't able to obtain FHA-approved loans. As mortgage provider, it's your job to let homeowner clients know when they're better off with a FHA Secure loan.
Current Non-FHA Loans
Clients with current adjustable rate loans that hadn't been provided by an FHA-approved mortgage lender can apply for FHA Secure refinancing. The best way to approach such clients is to draw out their life stories first. Listen to what they've gone through just by taking out a non-FHA loan.
Now, highlight to them the various benefits they can enjoy if they take out a FHA-approved mortgage. Let them know that while they may have made a mistake in the past, FHA Secure Refinance gives them the chance to rectify the mistake.
Delinquent Non-FHA Loans
Don't have clients dismiss their prospects just because they're delinquent on their payments. Even if they're not able to pay off their current loan in time, the FHA Secure Refinance program isn't ready to turn their backs on them yet and neither are you!
Dependable Income
Of course, having a current non-FHA loan, whether of good standing or not, isn't the only qualification that the FHA Secure Refinance program will be concerned with. Your client must also have a dependable source of income. The FHA isn't fussy as to what kind of income it is. It may be from full or part-time work. It may come from regular payments from a trust fund, retirement pension, alimony, or some other source. What's important is that your client will be able to prove its consistency.
Ability to Pay
Naturally, having a reliable source of income isn't always synonymous to being able to pay off your debts and many are quick to prove this true. You must also ascertain that your client's source of income is adequate to cover not just the costs of living but his monthly mortgage payment as well. If he's not qualified to do so then he may not be qualified for a FHA Secure refinance loan.
In this instance, you'll need to have a heart to heart talk with your client. You might even have to work with them closely and help them determine the actual total of their monthly expenses. You have to determine whether they're truly unable to afford their mortgages or they're just guilty of financial mismanagement.
The important thing to remember is not to give up on your client until you've exhausted all your options or you've realized that another option may be better for him.
Reason for Delinquent Payments
Earlier on, we've established that delinquent borrowers won't be dismissed right away. That's true. What could get their applications for a FHA Secure refinance loan, however, is if they're unable to prove that their delinquency is due to higher interest rates or mortgage payments. Again, you might have to work with your client closely to determine whether this is truly the case or not.
More Options for Qualified FHA Secure Refinance Loan Applicants
Now that you've guided your client all the way to the finish line, your final job is to ascertain that he makes the right choices till the end. Let him know, for instance, that he has the option to take out a fixed or adjustable refinance loan. When you take care of your clients with a FHA Secure Refinance loan, they'll take care of you as well with their continued loyalty.
Current Non-FHA Loans
Clients with current adjustable rate loans that hadn't been provided by an FHA-approved mortgage lender can apply for FHA Secure refinancing. The best way to approach such clients is to draw out their life stories first. Listen to what they've gone through just by taking out a non-FHA loan.
Now, highlight to them the various benefits they can enjoy if they take out a FHA-approved mortgage. Let them know that while they may have made a mistake in the past, FHA Secure Refinance gives them the chance to rectify the mistake.
Delinquent Non-FHA Loans
Don't have clients dismiss their prospects just because they're delinquent on their payments. Even if they're not able to pay off their current loan in time, the FHA Secure Refinance program isn't ready to turn their backs on them yet and neither are you!
Dependable Income
Of course, having a current non-FHA loan, whether of good standing or not, isn't the only qualification that the FHA Secure Refinance program will be concerned with. Your client must also have a dependable source of income. The FHA isn't fussy as to what kind of income it is. It may be from full or part-time work. It may come from regular payments from a trust fund, retirement pension, alimony, or some other source. What's important is that your client will be able to prove its consistency.
Ability to Pay
Naturally, having a reliable source of income isn't always synonymous to being able to pay off your debts and many are quick to prove this true. You must also ascertain that your client's source of income is adequate to cover not just the costs of living but his monthly mortgage payment as well. If he's not qualified to do so then he may not be qualified for a FHA Secure refinance loan.
In this instance, you'll need to have a heart to heart talk with your client. You might even have to work with them closely and help them determine the actual total of their monthly expenses. You have to determine whether they're truly unable to afford their mortgages or they're just guilty of financial mismanagement.
The important thing to remember is not to give up on your client until you've exhausted all your options or you've realized that another option may be better for him.
Reason for Delinquent Payments
Earlier on, we've established that delinquent borrowers won't be dismissed right away. That's true. What could get their applications for a FHA Secure refinance loan, however, is if they're unable to prove that their delinquency is due to higher interest rates or mortgage payments. Again, you might have to work with your client closely to determine whether this is truly the case or not.
More Options for Qualified FHA Secure Refinance Loan Applicants
Now that you've guided your client all the way to the finish line, your final job is to ascertain that he makes the right choices till the end. Let him know, for instance, that he has the option to take out a fixed or adjustable refinance loan. When you take care of your clients with a FHA Secure Refinance loan, they'll take care of you as well with their continued loyalty.
