Can You Qualify For The Obama’s Home Loan Modification and Refinance Plan?

Obama’s home loan modification and refinance plan, or the Making Home Affordable plan, is a plan, set into action by the federal government, that is dedicated to helping Americans improve their financial situation. Because of the current economy, the housing market has suffered from deep a deprecation. This has affected homeowners that want to sell their homes, as well as homeowners that need to refinance their current mortgage loans. Many homeowners are finding that their home has depreciated in value so severely, that they are unable to refinance their current mortgage, leaving them in dire financial situations.Obama’s home loan modification plan was created to help homeowners change the terms of their mortgage loan, in order to make the loan more affordable. The Making Home Affordable, or MHA plan, was especially created for those who have suffered from an increase in mortgage payments, a decrease in salary, or have otherwise come across financial hardships. It is estimated that around 9,000,000 Americans will be eligible for this program, which leaves many Americans wondering if they could possibly be eligible for a loan modification.Who Qualifies for Obama’s Home Loan Modification Plan?Obama’s loan modification plan is available to those whose mortgage loan balance is more than 80% of their home’s value due to a depreciation in the value of their home. However, this balance must be less than or equal to $729,750, or the home will be ineligible for a loan modification. The homeowner must also use the home as their primary residence, and have purchased the home before January, 1, 2009. The original mortgage must have been through Freddie Mac or Fannie Mae, and the homeowner must prove that they are struggling to make their monthly payments. Proof of financial struggle includes a mortgage payment that is more than 38% of the homeowner’s pre-tax salary.Who Qualifies for Obama’s Home Refinance Plan?Obama’s home refinance plan was set in place to help homeowners refinance their home, if the balance of their current loan is more than 80%, but not more than 105%, of what the home is worth. The current mortgage loan must have been obtained through Freddie Mac or Fannie Mae, and the homeowner must be using the property as their primary residence. Additionally, the homeowner must not have made a mortgage payment more than 30 days late within the past year and must have an adequate amount of income. When eligible, Obama’s mortgage modification and home refinance plan can greatly aid homeowners in improving their current and future financial situations.