Homeowners who are struggling with their mortgage payments may soon find an affordable solution, thanks to a new initiative by the Obama administration. Making Home Affordable is a plan to help such homeowners refinance, even if they are "upside down" in their mortgage, owing more than the home is worth. It is expected to help between 4 to 5 million homeowners refinance, who would otherwise have great difficulty doing so.
Mortgage refinance criteria
To be eligible for a mortgage refinance through the Making Home Affordable plan, homeowners must meet certain qualifying criteria. Over the previous 12 months, they must have paid all mortgage payments no later than 30 days past the due date.
Furthermore, their mortgage loan must be owned or guaranteed through Fannie Mae or Freddie Mac. Homeowners can determine whether they meet this requirement by calling their lender or by contacting Fannie Mae at (800) 7FANNIE or www.fanniemae.com/homeaffordable, and Freddie Mac at (800) FREDDIE or www.freddiemac.com/corporate.
Benefits of MHA mortgage refinance
There are several reasons homeowners should consider a mortgage refinance through the Making Home Affordable plan. Most significantly, Fannie Mae and Freddie Mac offer considerable flexibility with applicants' credit scores and histories. The traditional lending market, on the other hand, is still relatively rigid as the housing market slowly recovers.
Many Homeowners have been forced to move due to economic reasons or career relocation, and need help meeting payments on the home they left behind. The Making Home Affordable plan would benefit them because it applies to residential properties other than the applicant's current primary residence, like rental or vacation properties.
"Ensuring that responsible homeowners can afford to stay in their homes is critical to stabilizing the housing market, which is in turn critical to stabilizing our financial system overall," said Treasury Secretary Tim Geithner. "Every step we take forward is done with the imperative in mind."
Mortgage refinance criteria
To be eligible for a mortgage refinance through the Making Home Affordable plan, homeowners must meet certain qualifying criteria. Over the previous 12 months, they must have paid all mortgage payments no later than 30 days past the due date.
Furthermore, their mortgage loan must be owned or guaranteed through Fannie Mae or Freddie Mac. Homeowners can determine whether they meet this requirement by calling their lender or by contacting Fannie Mae at (800) 7FANNIE or www.fanniemae.com/homeaffordable, and Freddie Mac at (800) FREDDIE or www.freddiemac.com/corporate.
Benefits of MHA mortgage refinance
There are several reasons homeowners should consider a mortgage refinance through the Making Home Affordable plan. Most significantly, Fannie Mae and Freddie Mac offer considerable flexibility with applicants' credit scores and histories. The traditional lending market, on the other hand, is still relatively rigid as the housing market slowly recovers.
Many Homeowners have been forced to move due to economic reasons or career relocation, and need help meeting payments on the home they left behind. The Making Home Affordable plan would benefit them because it applies to residential properties other than the applicant's current primary residence, like rental or vacation properties.
"Ensuring that responsible homeowners can afford to stay in their homes is critical to stabilizing the housing market, which is in turn critical to stabilizing our financial system overall," said Treasury Secretary Tim Geithner. "Every step we take forward is done with the imperative in mind."
