In an effort to aide homeowners in the growing mortgage crisis, the federal government has announced it will make changes to its Federal Home Loan Administration insured-loan program. Now, a wider range of individuals will be able to qualify for the program. Consequently, these modifications, along with lowered interest rates, have caused an increase in mortgage loan applications. The Federal Home Administration has moved its attentions from heightening housing standards, the purpose it was originally created for in 1934, to providing consumers with multiple loan options. The loans are Federal Home Loan Administration insured, are much more reasonable priced, and are of an overall better quality. The FHA should not be confused with a mortgage lender; the organization simply insures loans for FHA mortgage lenders in order to avoid payment evasion. FHA mortgage loans are special in a variety of ways. First, and probably most accommodating and unique, the program allows payments to come from family members, in the form of a gift from a charity, or from an employer. The payments, which tend to be around the three percent mark, are low down and FHA mortgage interest rates are economical. FHA home loans cater towards a large portion of the public, including individuals who: desire to maintain low monthly payments, do not have a large savings set aside for payments, may experience trouble obtaining a loan because of flawed credit, are new homeowners. Not only has the federal government made changes to FHA loans, but they have also recently announced a new program called HopeNow. The initiative, which has the support of the Bush administration, works as a sort of bridge between homeowners and some of the most prominent mortgage service companies in the country. These service companies include trade organizations, mortgage advisors, and investors. HopeNow is especially tailored for homeowners either dealing with mortgage difficulties or on the brink of mortgage foreclosures. Essentially, a network of debt counselors and mortgage lenders work with homeowners to create a strategy to prevent the owner from losing their home. This means either arranging a payment plan to effectively regain control of past due payments or lessening the interest rate of the loan.As millions of ARM mortgages are hastily approaching their reset dates to higher interest rates, timing is crucial. Luckily, HopeNow has the necessary features to handle such time constraints. Because the initiative includes a wide network of many mortgage experts, debt counselors and lenders are able communicate with each other much faster than ever before. In order to further educate owners facing foreclosure on their homes, HopeNow plans to provide toll free telephone numbers as well as mass mailings; this widely distributed material will include information on refinancing options. Again, it is essential for homeowners to be mindful of the time, as many ARM mortgages head towards higher interest resets. Just as lenders and counselors have open communication, it is important for homeowners to notify their lender, in a timely fashion, in the event they will not or believe they will not be able to meet the higher interest rate payments.With the federal government implementing new programs and initiatives like HopeNow and the changes to FHA loans, homeowners are presented with more viable options to combat foreclosure. Though they do not have as many options as those facing mortgage foreclosures, owners looking to maintain low interest rates also have additional methods of doing so. But whether a homeowner fits into the former or latter category, it is always important to communicate with FHA mortgage lenders so that the owner is aware of all of the options available to them.