Can a FHA loan be modified every year?

No- if it makes sense you could do a FHA streamline refinance without an appraisal - email me at Pete.bass@everbank.com for more information

The simple answer is NO.

No the terms are either 15 or 30 year fixed or there are some ARM products. That adjust the rate after a set amount of time

FHA and VA adjustable rate mortgages (ARM's) can adjust every year after the initial fixed rate term (as little as 3 years, but more often 5 years). However, usually the maximum adjustment is 1%/yr. That is not the same as a mortgage "modification".

Folks will sometimes confuse "Modification" and "Refinance" as meaning the same thing.. so if by "Modified" you mean a refinance, then yes.. so long as there is a net tangible benefit of a minimum of 5% reduction in your monthly payment, then yes.. it can be done.. if your talking about a "loan modification" as defined by the HAMP program, where the borrower can no longer afford their payment so they are asking their lender to change the terms (Modify) of their original loan so it's more affordable, then typically, you can only have your loan modified one time.. Also understand that lenders are not obligated to participate in the HAMP program or allow for any modification if they do not wish to.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com