Guidelines To Qualify For The Obama Stimulus Mortgage Refinance Program

May 19, 2010 - PRLog -- The Making Home Affordable plan or the Obama stimulus program by President Obama is a highly streamlined scheme and struggling homeowners could save a lot of money on monthly mortgage payments in the long run by availing it. However, to get the benefits of the Obama stimulus plan one is required to be eligible for it. And the process is one that involves a lot of milestones to cross before finally being approved for a loan modification under the plan. In order to qualify for the Obama stimulus mortgage refinance, here are some guidelines that could be useful to you in determining your eligibility for a federal loan modification process and if yes, whether it actually suits your financial needs.

Your existing home mortgage loan has to be necessarily backed by either Fannie Mae or Freddie Mac. To save a lot of time you could verify this with either Fannie Mae or Freddie Mac by submitting your home address and any additional information demanded. Another important requirement for getting mortgage refinance loans under the Making Home Affordable refinance program is that your home must be from one to four units. Further, to qualify for loan modification under this program is that the value of your current home loan should not exceed 125% in comparison to the actual value of your home. So even if you owe more than your house is worth, you could still qualify since a property reassessment is not required under the tenets of the plan.

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Furthermore, you should be regular on your existing monthly mortgage payments for the last one year and any default during the period of scrutiny should not be later than 30 days. Once you pass through these barriers, it is imperative for you to verify if your new home refinance loan lender asks for any additional requirements from your second mortgage or lien holder to refinance your home. For getting permission from your existing lien holder, you should apply for a process of subordination. In the next step you should determine whether the refinance program is potentially worth it for you. The most significant factor here is the mortgage refinancing rates. The lower the interest rates, the lower could be the monthly payments and that means saving more money.

Additionally, it could be desirable for you to check your credit ratings as credit scores are of prime importance when considering applying for refinance home loans. To wipe out any discrepancies or inaccuracies on your credit report it is better pay off your credit card accumulations through a consolidation loan and boost your credit scores to get the best deal on a home refinance. Moreover if the ratio of the amount you owe on your home to its value is more than 95%, both Freddie Mac and Fannie Mae could impose additional interest rate increases to the extent of 0.5%. This is a tacit “add-on” requirement which is not much known to applicants. Thus, by following the above procedure you are in a better position to negotiate with your new lender for a loan modification to be secured under the Obama stimulus mortgage refinance plan. This could also help you to save a lot of time as well. Looking to the above subtleties it is recommended to avail online service help offered by reputed service providers like http://www.Refinanceitt.com as it could enable you to understand the subtleties involved in a loan modification under the Obama stimulus plan and quickly qualify for it.

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