Homeowners who are lucky enough to have a home loan financed by either Fannie Mae or Freddie Mac are now eligible for a home loan modification or refinance. This is due to the guidelines in President Obamas “Making Home Affordable” plan.

So, who exactly qualifies for a home loan refinancing or modification? Here are the eligibility requirements for Obamas plan:

-If you are a homeowner who has declared bankruptcy, you will not be eligible to refinance or modify your home loan using this stimulus plan.

-If more than a single family lives in the home, that home is not eligible for the stimulus plan from Obama.

-If your mortgage amount is worth more than your home, by as much as 5%, you will still be able to use this plan and refinance or modify your home loan. This especially helps homeowners who have recently seen their property values drop.

-Home loans which are either insured, financed, or backed in anyway by either Fannie Mae or Freddie Mac are automatically qualified to use this housing stimulus plan.

Refinancing or home loan modification are now favoring the borrower more than ever. The Federal Government has limited the amount that a mortgage payment can be. Now, a home loan can have a monthly payment of no more than 31% of the homeowners gross monthly income. On top of that, your total payments towards debts, including, credit cards, home loans, and other things can not exceed 55% of a homeowners monthly gross income. Also, HUD (A Government sponsored Housing and Development department) is now offering free home mortgage counseling for the millions of homeowners who wish to use this plan. These HUD agents will act as your representatives when dealing with mortgage lenders and banks, and get the best refinancing deal you can get. Do some basic research and help ensure you are getting the best possible deal you can.

-M Petrone

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