GA Bad Credit Refinance With FHA

By Brenda Puckett

You cannot turn on the news without seeing a new headline trumpeting the meltdown of the mortgage industry. Obtaining a conventional mortgage is becoming more difficult by the minute. Qualification guidelines are arguably tighter than they have ever been.

This financial meltdown is happening in the middle of a time period when record numbers of adjustable rate mortgages are scheduled for rate increases. Adjustable rate mortgages generally started out with low teaser rates which means that no matter what rates the Federal Reserve cuts, these mortgage rates are going up. This initial adjustment is normally less limited than later adjustments. It is fairly common now to see mortgages which had starting rates in the low 5 percent range jumping up 8, 8.5 or 9! Subprime loan rates can be moving even higher. Borrowers who are not ready for these changes will end up as part of those foreclosure statistics on the nightly news.

If you having difficulty fitting into the new tighter conventional mortgage guidelines due to past credit problems or because your home's value has not gone up as fast as you hoped, there may be a very good option if your loan amount is below $346,250 in more populated Georgia counties and $271,050 in more rural Georgia counties. The solution is to try to qualify for an FHA loan.

FHA loan guidelines allow refinancing with higher debt ratios. They allow you to qualify for a new mortgage even with past credit problems so long as you can provide a good explanation and you have solved the problem, or if a new mortgage will solve the problem. FHA loans can also take up as much as 97% of the value of your home if necessary.

Don't just give up if you currently have an adjustable rate mortgage and you know the payment is about to go up. Call a HUD approved FHA lender to find out if this very good option is open in your situation. You may be very glad you did.

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To find out more details on Georgia FHA mortgages and whether you qualify for an FHA refinance, contact Brenda Puckett at Home America Mortgage or visit her website for more no obligation complimentary details.