In 2012 the federal government tweaked a mortgage relief program to help more homeowners. The goal is to assist people who owe more on their home than it's worth, who are paying high interest rates. The hope is to allow these homeowners to refinance into a lower interest rate, regardless of the value of the home. This could save some homeowners a good chunk of change on their monthly house payments. And the program ends this year.

This is a guest post. The views expressed do not necessarily mirror what we do at AmeriFirst Home Mortgage. For more details on how AmeriFirst Home Mortgage specifically handles credit issues like foreclosure, click below:

Finding a foreclosed home with weather damage - frozen pipes, water lines on paneling and more - doesn't have to be the end of the journey. Weather and winter problems in the home you want to buy can be solved with the FHA 203k.

Finding a solution to an impending foreclosure is difficult. Some banks will work with homeowners to get caught up. Others won't budge no matter what. Sometimes a short sale is an option. One thing some homeowners think is a solution actually isn't: HomePath. In reality, HomePath is a solution for home buyers instead of homeowners. You see, HomePath is an option for buying a house already foreclosed on by Fannie Mae.

The FHA 203k is one of the most powerful home improvement loans a home buyer can have. Most homes qualify for it, and many borrowers do as well. The 203k loan allows a buyer to roll the cost of repairs, remodeling or renovations into the single mortgage. This means you can buy a home and replace the windows, the decor or build a second bathroom if needed. Instead of a second mortgage based on current equity (this is what a home equity line of credit does) the FHA 203k is one mortgage, one payment, one interest rate.

Home remodeling projects can turn off a home buyer in a hurry. Imagine finding a great house in the perfect location, only to find out it needs a furnace (the last owner simply took it because the bank foreclosed on the home) and new windows (the old ones in there now let in all the cold air). Add to the list a kitchen upgrade and you're looking at a house most buyers would walk away from, despite the perfect location and potential. If you would keep looking, stop and consider this: the home buyer could pay for a professional to replace the windows, new appliances and a furnace. And the cost would be rolled right into the mortgage, making the monthly payment affordable. This option: the 203k loan.

It's tough to find first time home buyer deals. The current housing market is full of great deals, but we all hear all the time in the news how tough lenders are on buyers now, too. But here's the secret: lenders aren't tough on buyers. Lenders are just staying away from the easy money that was floating around back before the housing bubble burst. You see, when that happened most of the lenders and brokers who made those deals (sub-prime mortgage and interest-only loans) went out of business. Now you'll find lenders who have done business the right way the entire time. Those lenders are now making sure we don't get into another housing market meltdown. So the question remains: How do I find first time home buyer deals?

Sometimes a short sale may seem like the only answer. On rare occasions, it may be something to consider. However, it's typically pretty damaging to your future mortgage loan chances. In fact, a short sale on your credit history can be as damaging - or worse - than an actual bankruptcy.

The HomePath® mortgage program is for foreclosed homes, but it's not for homes on the brink of foreclosure. If you're looking for help to avoid foreclosure click here. If you're a home buyer (or thinking about buying a home someday) then HomePath is one of the mortgage loan options you may want to learn about. It's a good way to find a lower-priced house and buy it with a low down payment.

Thanks to reducing home prices and low rates mortgages, a lot of bargain-hunting folks are trying their luck in foreclosed homes.