In early 2009, the Obama administration announced a program called Making Home Affordable. There has been a lot of press on this program, one that many people call the Obama Mortgage. But what IS it and who is eligible?
FREE CREDIT SCORE
Do you know what's on
your credit report?

Obama Mortgage

Who Qualifies for the Obama Mortgage Refinancing Program?

There has been a lot of press on what many people call the Obama Mortgage. But what IS an Obama Mortgage and who is eligible?

In early 2009, the Obama administration announced a program called Making Home Affordable. This program is expected to help nine million homeowners keep their homes and avoid foreclosure through refinancing and modified loans designed to lower monthly mortgage payments.

The Obama mortgage is not part of the Hope for Homeowners program started in 2008. Making Home Affordable does offer hope for homeowners in need of mortgage rescue, but there are specific conditions for the program. Do you wish to apply for refinancing under Making Home Affordable?

  • You must be current on your mortgage payments. Those who hope to take advantage of programs under a 2008 or 2009 housing rescue bill soon learn that staying current on your mortgage is often one of the first requirements. That’s one reason financial advisors tell people not to default or stop paying their mortgages. To qualify for an Obama Mortgage you must not have been more than 30 days late on any mortgage payment in the last 12 months.
  • Your home must be your primary residence. For those in need of homeowner’s relief with FHA loans, this is a very familiar condition, but for those in conventional loans, the “primary residence” requirement may be new. Those who don’t live in the building they seek refinancing for will not be approved for an Obama mortgage.
  • Your home must be financed with either a Fannie Mae or Freddie Mac loan. If you aren’t sure if your home loan meets this requirement, contact your loan officer or call 1-800-Freddie or 1-800-7FANNIE to learn more.
  • Normally, home owners with loan-to-value ratios above 80% are not eligible for refinancing, but Home Affordable gives homeowners affected by such loan-to-value ratios a second chance; you may be eligible to refinance into lower mortgage rates and stable interest rates if you qualify. The Home Affordable refinance program’s official site asks, “Do you believe that the amount you owe on your first mortgage is about the same or less than the current value of your house?” If so, you qualify for refinancing rather than loan modification.

If you meet these conditions, your next step should be to contact your loan officer to ask about starting the application process. You will need all information about your current loan, any second mortgage plus other lines of credit like credit cards or personal loans. You’ll also be asked to supply your most recent tax documents as part of the process of applying for an Obama mortgage refinancing package.

Legislation is pending to help those who have FHA and VA loans get similar homeowner relief as those who have Fannie Mae and Freddie Mac loans under Home Affordable, but as of now those with FHA and VA loans should ask their lenders what alternative options are available since the Obama mortgage is not designed for FHA and VA borrowers.

FHA NEWS and RELATED ARTICLES
If you seek an FHA loan, time is very short to take advantage of the First Time Home Buyer's Tax Credit. Current guidelines have the plan expiring at the end of April, 2010. The Department of Veterans Affairs has stated in no uncertain terms that it expects VA loan issuers to provide all reasonable efforts to help veterans avoid foreclosure or at the very least, cut the losses when foreclosure can’t be avoided. New changes give more flexibility to loan servicers, plus new help for home owners who are stuck in homes that are worth less than what is owed on the property. There’s also more help for unemployed home owners.
ADDITIONAL ARTICLES
Privacy Policy | Terms of Use | About Us | Site Map | Contact | FHA Lenders

Copyright © 1997- 2010 · FHA.com · All Rights Reserved
Web Design: Bouncing Pixel · Houston, Texas


Qualify for an FHA Loan
Compare Refinance
Mortgage Rates
FHA Mortgage Rates
CALL FOR FHA RATES
(888) 630-0099

Speak to a lender now.
We will match calls to our toll free number with our network of preferred FHA lenders.
Sites and Offers of Interest
 

Free FHA Limits Calculator

Display current FHA loan limits for states and counties on your real estate, mortgage, or community website.

Get: FHA Limits Widget

FEATURED SITES:

Military Hub
Helping you make the best financial choices, build wealth, and save money during and after your military service.

-- Military Insurance
-- Military Pay
-- GI Bill Education
-- Military Finance

VA Loans
Offering VA loan products that meet the home financing needs of active duty military and veterans across the country.

-- VA Loan Limits
-- VA Loan Refinance
-- VA Loan Guidelines


Remember, the FHA does not make home loans. They insure the FHA loans that we can assist you in getting. FHA.com is a privately owned website that provides information about FHA guaranteed home loans, and is not associated with the federal government or HUD / FHA.

FHA LOAN TYPES:

-- FHA Refinance
-- FHA Home Loan
-- FHA Secure
-- FHA Reverse
-- FHA Loan (fixed rate)
SPECIAL FHA TOPICS:

-- FHA Down Payments
-- FHA in Your City
-- Obama Mortgage
-- HOPE Act
-- FHA Mortgage Tips
-- FHA Loan Prequalify
-- Other Loan Types
-- FHA Loan Questions

FHA Foreclosed Homes

SEARCH FOR FREE!

Search by State
- or -
Enter Zip Code

- A Military Hub Site -
Military guidelines, regulations, and benefits are introduced each year for everything from Military Pay Charts to your VA Loan benefits. We can help you stay informed. > See also: 2009 Military