Homeowners on the brink of foreclosure might still be able to stay in their homes as Fannie Mae, a government-controlled mortgage company is going to give the troubled homeowners the option of renting their homes for a year.

With the program, qualified homeowners facing foreclosure will be able to stay in their homes by signing a lease in connection with the voluntary transfer of the property deed back to the lender.

The rental program is designed to help delinquent homeowners who don't qualify for a loan modification or have not been able to sustain other loan workout solutions, but still want to remain in their homes.

The Deed for Lease Program provides an additional option for qualifying homeowners who are facing foreclosure and are not eligible for modifications," said Jay Ryan, Vice President of Fannie Mae. "This new program helps eliminate some of the uncertainty of foreclosure, keeps families and tenants in their homes during a transitional period, and helps to stabilize neighborhoods and communities."

To participate in the program, borrowers must live in the home as their primary residence and prove that they can afford the market rent, which will be established by the management company running the program. Rents are based on current market rates and should not be more than 31 percent of their gross income.

Leases under the new program may be up to 12 months, with the possibility of term renewal or month-to-month extensions after that period. A Deed for Lease property that is subsequently sold includes an assignment of the lease to the buyer.

The new "Deed for Lease" program will allow homeowners to transfer title to Fannie Mae and sign a one-year lease, with potential month-to-month extensions after that. It also helps save money because the lender does not need to complete the often lengthy and time-consuming foreclosure process.

The program helps "eliminate some of the uncertainty of foreclosure, keeps families and tenants in their homes during a transitional period, and helps to stabilize neighborhoods and communities," Jay Ryan, a Fannie Mae vice president, said in a statement.