FHA home mortgage loans may be the most flexible alternative to refinancing hard to meet payments. The FHA considers the current market conditions and unemployment rates during the loan determination process. FHA loans are more forgiving of past circumstances than traditional home mortgage loans also.

FHA loans are more forgiving because they work through other lending institutions who are FHA approved. This means the borrower will deal with a local bank that finances FHA home mortgages. The lender is authorized to take loan applications, process the application, underwrite the loan and close the loan. FHA doesn't put the money on the loan directly, they are more like an insurance company that guarantees the bank that they will receive their money in case a borrower defaults on the loan.