FHA Home Loans  >>  Refinancing ARM

Can the FHA Help Me Refinance My ARM Into a Fixed Loan?

by Brandon Cornett

Article Update: The FHA Secure program has expired. But it's still possible to refinance from an ARM into a fixed-rate mortgage using the FHA home loan program. They just don't use the "Secure" name anymore. The rest of this article is still accurate.

Can the FHA help you refinance an adjustable-rate mortgage loan into a fixed-rate mortgage? Yes, if you meet certain qualifying criteria, the FHA might be able to help you refinance your high-interest ARM into a fixed loan with a lower rate.

The program has specific underwriting guidelines, and it is designed to help homeowners in specific situations. The official name for the FHA refinancing program mentioned in this article is FHA Secure. They actually write it as one word jumbled together -- FHASecure -- but to make it more readable in this article I will separate the name.

If you have an adjustable rate mortgage with a high interest rate, you may be able to refinance into an FHA home loan through this particular program. It is specifically designed for people with good credit scores, and those who made regular on-time payments toward their mortgage before it reset to a higher rate. If you began falling behind on your payments after the ARM loan reset, you could still qualify for the FHA Secure program.

Let me say that again, just to make it clear. This refinancing program is particularly designed for homeowners who have a history of making their mortgage payments on time BEFORE the adjustable-rate mortgage reset. Even if you started missing payments AFTER the interest rate adjusted, you could still qualify for this FHA refinance program.

In addition to having good credit, homeowners will be required to bring some cash or equity to the table in order to participate in this refinancing program. Generally, this means at least 3% cash down payment or sufficient equity in the home. If you have specific questions about these guidelines, and you want to participate in this program to refinance your ARM loan, you should contact an FHA-approved lender. You can find such a lender and learn more about the refinancing program by visiting the FHA website.

This question relates to adjustable-rate mortgage / ARM loans, and how the FHA can help you refinance into a fixed-rate. If you have additional questions about this subject, or about FHA home loans in particular, please visit our Q&A library for more information.

If you want to know if you're qualified for this type of refinancing, you should read the guidelines provided on the following websites:

I hope this article helps you understand your mortgage refinance options under the FHA. Good luck.