This financial meltdown is happening in the middle of a time period when record numbers of adjustable rate mortgages are scheduled for rate increases. Adjustable rate mortgages generally started out with low teaser rates which means that no matter what rates the Federal Reserve cuts, these mortgage rates are going up. This initial adjustment is normally less limited than later adjustments. It is fairly common now to see mortgages which had starting rates in the low 5 percent range jumping up 8, 8.5 or 9! Subprime loan rates can be moving even higher. Borrowers who are not ready for these changes will end up as part of those foreclosure statistics on the nightly news.

If you do not fit into the new tighter conventional mortgage guidelines because of credit problems or because your home's value has not risen as quickly as you planned, there may be a very good option if your loan amount is below $346,250 in more populated Georgia counties and $271,050 in more rural Georgia counties. That solution is to use an FHA loan.

FHA loans allow borrowers to refinance even with higher ratios of debt in relationship to total income. FHA loans allow you to qualify for a mortgage even if you have experienced past credit problems just as long as there is a good explanation for the problems and the problems have been cured or a new mortgage will help cure them. FHA loans also allow a loan amount can go as high as 97% of the value of your home when necessary.

Don't surrender if you currently have an adjustable rate mortgage and your payment is scheduled to go up. Call a local FHA lender today to explore your options to solve this problem.