Homeowners who have mortgages backed by lending giants Freddie Mac or Fannie Mae are most likely eligible for a mortgage modification or refinance thanks to Obamas “Home Affordability Plan”. Both of these lending giants must now abide by guidelines set out in Obamas housing stimulus plan.

So, who will qualify for loan modification or refinance? Here are some guidelines for eligibility for this program from Obama:

-Homeowners who have declared bankruptcy will not be eligible for the modification or loan refinance plans available from this stimulus.

-Homes which have more than 1 family will not qualify. Single family homes only.

-If only 1 family lives in the home, the borrower will be eligible for this stimulus plan.

-If the amount of your mortgage exceeds the value of your home by as much as 5% you will still be eligible for refinancing or modification. This helps homeowners who have seen their property values plummet in the wake of this housing crisis.

-If your home loan is either insured by, or owned by, Fannie Mae or Freddie Mac you are automatically eligible for this home mortgage stimulus plan.

Now, refinancing a home mortgage is going to favor the borrower even more. The government has put a cap on the amount the monthly mortgage payment can be. Currently, it is 31% of the borrowers gross monthly income. Furthermore, total debt payments such as car loans, credit cards. Home loans, can not exceed more than 55% of the borrowers monthly income. HUD (A government run Housing and Development counseling group) has made professional mortgage counseling for a lot of homeowners who are looking to take advantage of this plan. They help present your case and ensure the best refinancing deal for you. Make sure you get the best deal possible and take your time and do some basic research.

-M Petrone

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