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The new FHA short refinance plan aims to help the struggling homeowners who are facing financial problems. It permits the homeowners who owe more on their homes than they are value to refinance their mortgage.

Those homeowners who have fought hardly against the housing crisis and have continued making their mortgage payment in spite of the drastic downfall their property value will now no longer be ignored by the Obama government. Finally the FHA has rolled out new FHA short refinance plan which permits the homeowners who owe more on their homes than they are value to refinance their mortgage. Loansstore also provides services for this new FHA refinance program and helps the struggling homeowners.

This new FHA home refinance plan is aimed to help 3-4 million people who are facing financial troubles. The requirements of this plan are not so strict and thus it will be able to give a lifeline to the struggling homeowners.

To qualify for this new FHA refinance program the homeowner should meet the following criteria:

• Negative equity: the homeowner should be in an upside down mortgage that implies that they should owe more on their home than it actually worth it.
• Current on existing mortgage: the homeowners should be current on their existing mortgage.
• Primary residence: the homeowners should occupy their primary residence and should not live it vacant.
• Minimum credit score should be 500: the homeowners should qualify for the new loan payment and his minimum credit score should be equal to or more than 500.
• Loan to loan value percent: the new FHA insured mortgage should not exceed a loan-to-value of not more than 97.5%. And if suppose, a homeowner has a home affordable refinance program mortgage than the new FHA loan and second loan should not exceed more than 115 percent combining both.
• Approval from lender: the lender should agree to write off nearly 10 percent of the unpaid balance. If there are two mortgages than the first lender should write at least 10 percent of the unpaid balance and the second lender should agree to remain in the same second lien place.
• At last the homeowner cannot refinance a present FHA insured loan.

To know more on FHA Refinance Program , it is hereby suggested to use the professional services offered by reputed online services like obama mortgage refinance, home affordable refinance program and home equity loan providers like Loansstore.