Obamas Housing Stimulus Plan will help around 6 Million homeowners refinance or modify their existing loans. There are some eligibility requirements that I have included below.

General Qualifications for Homeowners and the Obama Refinance Plan
-The home which is to be refinanced needs to be occupied by the owner. The owner must live there.
-The mortgage loan is backed by either Freddie Mac or Fannie Mae, and must be a conforming loan.
-Your mortgage payments for the past 12 months are current and up to date.
-There is enough income to be able to afford the new mortgage.
-The existing loan has an LTV (Loan to value ratio) between 80%-105% of the homes current value.

The Main Obama Refinancing Program Features
A refinance is just obtaining a new loan and replacing your existing loan with that one. The main point of Obamas refinancing program is that it will allow the loan amount to exceed 80% of the homes value. Usually, before this plan, no new loans would be approved in which the amount exceeded 80% of the homes value. This helps a lot of homeowners who have seen their property values dramatically fall throughout this housing crisis.

Obamas Loan Modification General Qualifications
-The home loan must be controlled by Freddie Mac or Fannie Mae.
-The home in question must be the homeowners main residence.
-The mortgage must have originated before January 1st of 2009.
-For a single home, have a remaining balance less than $730,000.
-The mortgage hardships must be a result of financial hardship. This financial hardship can be the result of an increased mortgage payment, borrowers income being reduced or stopped, medical expenses, and a few other reasons that would increase the homeowners expenses and make it not possible to have enough money to pay the mortgage as well. You will be required to sign an affidavit of financial hardship.
-The monthly mortgage payment is over than 38% of the homeowners gross monthly income. This is also known as the debt to income ratio, or DTI.

Refinancing a home mortgage now can be a very financially smart thing to do. With the introduction of Obamas housing stimulus plan, millions of homeowners are eligible to save hundreds of dollars per month. This will help a lot of foreclosures and mortgage defaults from happening. Talk to your bank or mortgage lender now and start the process of saving a lot of money.

-M Petrone

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