All around America people are feeling the sting of the struggling economy and the housing market is no different. Many homeowners are struggling to stay in their homes as they face job loss and possible foreclosure. Due to the current housing crisis many homeowners are struggling to stay in their homes because their mortgages have become too difficult to pay and this is causing the highest rate of foreclosure we have ever seen. However, those who received a FHA mortgage loan are in better shape than most because they are able to modify or refinance their current mortgage loan into a much more affordable rate.

There are many people that have used a FHA loan to purchase their homes especially in the past few years. These FHA loans have gained popularity mostly because ones odds of being approved is better even if one has bad credit and in today’s economy there’s more bad credit than good. Here I will provide a couple things homeowners will want to know when refinancing their current FHA mortgage loan.

When most people hear of a FHA loan they seem to think that it is a federally backed, financed or issued loan which is untrue. They are just loans that are secured by the FHA, basically these loans are just secured by the government but not issued, financed or backed by them. When using a FHA loan there is no limit or required income when getting the loan which is a great opportunity for current homeowners or potential homeowners that do not have cash to put down on a house. These FHA loans are used in hopes of stabilizing the current slumping housing market and help people get a home.

It is easier now more than ever before to refinance a FHA mortgage loan. The FHA would rather have homeowners stay in their homes than lose it to foreclosure because of defaulting on payments. What this means is many homeowners no matter what their current financial situation will be able to refinance their FHA loan to a more affordable monthly payments. One the biggest requirements is that the not be delinquent or late at all.

By taking a few simple steps and refinancing your FHA loan you can save money. Do some research and see how much you can potentially save.

-M Petrone

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