Obama’s Stimulus Plan: Does Your Mortgage Qualify?
The new Making Home Affordable Plan passed by President Obama aims to help up to 7 to 9 million families restructure or refinance their mortgages to avoid foreclosure. Some borrowers may qualify for interest rates as low as 2%. In addition, some borrowers may also qualify for incentive payments up to $5000 over 5 years to help pay down the principal they owe.
To find out if you qualify for this program and to learn how to apply, go to Refinance Eligibility on the FinancialStability.gov website or check out this chart from the Wall Street Journal: Who Would Qualify?
For a better understanding of how the program works, here are three case studies from the treasury department: Support Under the Homeowner Affordability and Stability Plan: Three Cases
Some of the qualifying factors are that the home must be owner-occupied, homeowners must be in good standing with their loans, only loans held by Fannie Mae or Freddie Mac qualify, borrowers can’t owe more than their home is worth, mortgage payment must exceed 31% of the borrower’s gross monthly income. Homes worth more than $759,750 do not qualify. Applications for this loan modification program must be submitted by June 2010 and can only be applied to mortgages signed before January 1, 2009.
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