Are you a Refinance or Loan Modification Candidate?
Directed at homeowners whose home values have suffered as housing
prices have plummeted, with many losing some 40% - 60% in
value. The Making Homes
Affordable refinance plan is currently open only to
homeowners with
conforming loans. These are generally
those mortgage loans
which were originally sold to Freddie Mac or Fannie Mae.
The Making Homes Affordable Program waives the requirement that the homeowner must have at least 20% or more equity in their property in order to refinance. The Making Homes Affordable program does not bring down the principal on the mortgage loan, but it does allows homeowners to refinance that principal up to 105% of the appraised value.
Making Homes Affordable Modification Program Information
This program targets borrowers whose mortgage payments have become unaffordable either because of a hardship, such as job loss or illness, or because their adjustable rate mortgage interest rate has reset to a higher rate.
The government is providing cash payments and financial subsidies to help making homes affordable mortgage lenders lower monthly payments to no more than 31% of these borrowers’ gross monthly household income. It allows for reduction in interest rates, extension of repayment terms and participation in other relief plans, all of which are entered into for a set period of time.
2009 Housing Nightmares
