The economy, especially the housing market, have seen huge drops recently which leaves homeowners helpless, jobless, and possibly, homeless. Mortgage payements are harder than ever to make and foreclosures are rising fast. Homeowners who bought their home with an FHA loan though are in luck and can refinance their mortgage into an affordable rate.

A lot of homeowners, especially in the past few years, have bought their home with an FHA loan. These FHA loans have becomea very popular option for homebuyers as the odds of being approved for a typical home loan are reduced with bad credit, and a lot of people, especially lately, have worse credit. Here are a few general things homeowners should know when it comes to refinancing their FHA loan.

A FHA loan is not a government backed, issued, or financed loan. This is generally the idea that homeowners have when they hear about an FHA loan option. These are simpy just loans which are secured against defaulting by the FHA. Basically, the Government just insures the loans, but does not issue them. There is no limit for incomes when getting a home with a FHA loan which is a big plus for potential home buyers who have little cash to put down on the home. The FHA loans work with borrowers to help get them into a home and sabilize and revitalize the housing market.

Also,refinancing an FHA mortgage loan is now easier than ever. The FHA really wants homeowners to be able to stay in their home as opposed to foreclosure or mortgage default. This means that a lot of homeowners, regardless of the reason, or financial situation, can get a mortgage refinancing for their FHA loan that they will be able to afford every month. The biggest requirements are going to be that the loan is an FHA loan, and that the loan is not late or delinquent in any way.

Refinance your home FHA mortgage today and see how much money you could potentially save every month through a few easy steps.

-M Petrone

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