"FHASecure is designed for families who are good borrowers but were steered into high-cost loans with teaser rates," said Assistant Secretary for Housing-FHA Commissioner Brian Montgomery.

"To qualify for FHASecure, eligible homeowners must meet the following five criteria:
1) A history of on-time mortgage payments before the borrower's teaser rates expired and loans reset;
2) Interest rates must have or will reset between June 2005 and December 2009;
3) Three percent cash or equity in the home;
4) A sustained history of employment; and
5) Sufficient income to make the mortgage payment."

"Under the new FHASecure plan, FHA will allow families with strong credit histories who had been making timely mortgage payments before their loans reset-but are now in default-to qualify for refinancing. (Source - HUD news release HUD No. 07-123)"