In an effort to provide relief to homeowners who are struggling to pay their mortgages, or who are already considerably underwater with their mortgage-home valuations, the FHA has developed what is called Streamline Financing.

It's an excellent deal if you qualify. One of the best things about FHA Streamline Financing is that your credit rating doesn't matter, even if it's bad. It also doesn't matter how shaky your current position is with your home or how dire your employment situation.

FHA Streamline Financing does not require:

o Employment verification
o Income verification
o Credit score verification
o A home appraisal

It sounds almost too good to be true, but that's how this program works. You might be unemployed, have a terrible credit rating and your home may be worth half and much as you owe -- but you can still get an FHA Streamline Financing deal. This program will use the original purchase price as your home's valuation. You are allowed unlimited loan-to-value.

There are some sticklers, however. For example, this program is only for people with existing FHA mortgages. If you have a conventional mortgage through Fannie Mae or Freddie Mac, you don't qualify for this program.

Here are some other factors which must be met to qualify:

o You must have a perfect payment history for 12 months. Any 30-day, 60-day or 90-day late payments on your record will disqualify you.

o There is a 210-day waiting period between refinances. You will be required to make six payments on your current FHA-insured loan.

o You must demonstrate that a Streamline refinance will have a "net tangible benefit." That is, you need a good reason to want a refinance. So, a net tangible benefit will be viewed to be satisfied if you can realize at least a 5% reduction in your principal amount plus the costs of your interest and mortgage insurance.

o You cannot increase the amount of your loan balance to take care of other costs. What this essentially means is that you must cover some of the other costs yourself, such as origination charges, titles charges and whatever is in escrow, such as securities, funds or other assets being held by a third party.

Finally, you should be aware that there are two distinct "populations" are far as the FHA Streamline program is concerned - those who who have a loan replaced before June 1, 2009, and those have their loan replaced after June 1, 2009.

Those fortunate to be in the older population will pay a much lower rate of mortgage insurance than those in the later population.

If you meet all of the requirements for the FHA Streamline Financing, and you are experiencing considerable financial difficulty from unemployment to bad credit, this program can go a long way to helping you rebuild your life and finances while preserving the security of your home.