Obama Mortgage assistance With the Home Affordable Refinance Program
In fact the home values have depreciated so significantly that the latest Obama mortgage plan enables borrowers to refinance their mortgage up to 125% of the property’s present value.The 125 loan plan aims to refinance borrowers into lower mortgage payments.
Home Affordable Refinance Loan Qualifications: The Home Affordable Refinance Program allows a homeowner to refinance their current mortgage as long as the home is used for primary residency. The homeowner must be current with their existing mortgage and the mortgage must be insured by one of the mortgage companies that are backed by the government .The home must have been purchased before or on January 1, 2010 to qualify. The home’s value must also have dropped causing the homeowner to not be able to refinance using conventional loans.
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There is a vast group of Americans that owe more on their mortgage than their house value is worth after real estate values dropped. Another group of Americans are not “upside down” in their mortgage, but they cannot refinance conventionally because refinancing 80% of the home’s current value does not allow them to even pay off the existing mortgage.
The Home loan modification may finally be the solution that many Americans have been looking for. Past government refinance plans like Hope for Homeowners and Federal Home Affordable Secure were unable to help the average borrower refinance because they could not qualify due to lending program glitches.Home refinance may still be a good fit for borrowers who have credit scores below,but the borrower must be able to display compensating factors. Like conventional and FHA mortgage loans, pay stubs are required, and borrowers must be able to document that they have the ability to afford the new loan payments.
USLOANZ suggests comparing quotes from conforming and Federal Home Affordable lenders who specialize in government relief and Home Affordable Refinance Program.
President Obama’s Home Affordable Refinance (HARP) program has been revamped. Since there are a few changes to the plan, many homeowners now want to know if they qualify to refinance now. Watch this video to have the home affordable refinance program explained in under 2 minutes. The first thing you should be aware of is that Obama’s HARP program is NOT going to help everyone that is upside down or underwater on their mortgage. One of the main qualifications is that your loan must be owned by Fannie Mae or Freddie Mac and you must have received that loan before June 2009. Now, how do you know if Fannie or Freddie owns your loan? Just give me a call or send me an email and I can look that up for you. If it is owned by them, then it doesn’t matter how far upside down on your mortgage you are, because the loan to value cap has been lifted completely. In addition to that, you won’t need to have an appraisal, and loan fees will be reduced or possibly even eliminated if you are refinancing to a shorter term, like going from a 30 year to a 15 year fixed. It’s important that your last 6 payments have been made on time, and you can’t have more than 1 late payment in the last 12 months. More details and rate pricing from the banks will be revealed around November 15th, and the banks that I work with are expected to start taking loan applications for this program around December 1st. Also, the program will be available through the end of 2013, but there’s no guarantee that low …
