Current refinancing plans are set to help 400,000 homeowners find mortgage relief by the end of this year.

The Hope for Homeowner’s (H4H) stimulus package began implementation on October 1, 2008. The H4H program helps troubled homeowners keep their home and enables lenders to receive a Federal Housing Administration (FHA) guarantee on the loans.

The H4H program is voluntary and under the terms; lenders agree to refinance the existing mortgage at 90% of the current appraised value; lenders assume the loss on the remaining balance; the new loan is FHA guaranteed for 30 years at a fixed rate and is a fully amortized, fully documented loan; the homeowner must forego a portion of the home’s future appreciation to the FHA when the home is sold.

The FHA has posted a list of participating lenders in the Hope for Homeowners program. The FHA advises homeowners to contact their servicing lender and any subordinate lien holders. Their participation is vital in order to refinance your home into a H4H mortgage. The FHA reminds you that the program is voluntary and your servicing lender may offer you a different solution for avoiding foreclosure. The FHA will update their list of participating lenders weekly on Friday’s.

You can access the FHA’s list; here