PHOENIX -- A new program takes effect on Wednesday to help people struggling to keep their homes and others already going through foreclosure.

ONLINE: Hope For Homeowners

Legislation signed into law takes effect Oct. 1 that allows HUD’s Federal Housing Administration to continue providing targeted mortgage assistance to homeowners.

The Hope for Homeowners program will continue FHA’s existing and successful efforts to provide aid to struggling families trapped in mortgages they currently cannot afford.

Under the program, certain borrowers facing difficulty with their mortgage will be eligible to refinance into FHA-insured mortgages they can afford.

FHA only allows owner-occupants to be eligible for FHA-insured mortgages. Borrowers must also meet the following eligibility criteria:

Their mortgage must have originated on or before January 1, 2008.

Their mortgage debt-to-income must be at least 31 percent

They cannot afford their current loan

They did not intentionally miss mortgage payments

They do not own second homes.

Features of FHA-insured loans under the new program include:

30-year, fixed rate mortgage.

Maximum 90 percent loan-to-value ratio.

No prepayment penalties.

$550,440 maximum mortgage amount.

Extinguishment of any subordinate liens.

New home appraisals from FHA-approved appraisers.

The program will last through Sept. 30, 2011.

Homeowners can determine if they are already eligible for mortgage assistance through FHASecure, FHA’s existing refinancing program.

Information is available through either of the following options:

Contact a local, HUD-approved housing counseling agency at www.hud.gov

Contact the HOPE NOW Alliance at 1-888-995-HOPE.