Making Home Affordable Program Requirements For Reducing Monthly Payments Relaxation

The making home affordable program requirements for refinancing and modifying mortgages have been simplified to make it convenient for distressed homeowners to reduce monthly mortgage payments.
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Jan. 23, 2013 - PRLog -- The making home affordable program requirements for refinancing homes have been relaxed to allow more homeowners to take advantage of historically low mortgage interest rates. Nevertheless, borrowers have to make sure that their existing home mortgages are backed by either Freddie Mac or Fannie Mae. As per government estimates, millions of financially distressed borrowers, who are still struggling to deal with the rising burden of their mortgage debts because of fallen home values, could still be able to qualify for lower interest rates on home loans and thereby avoid a possible foreclosure. If you are one among them, it could be vital for you to get started with the process all over again even if you have been denied for a low rate home affordable refinance plan (HARP) loan previously. Just determine your eligibility to secure an approval.

Apply And Check If Relaxations In Making Home Affordable Program Requirements Can Help You

Alternatively, qualification criteria for even making home affordable modification program have been changed to make it easier. Under the changed eligibility HAMP rules and regulations, even those own rentals properties could get the existing terms of their mortgage loans modified by using government mortgage relief assistance. By qualifying for the revised HAMP plan, borrowers could get access to the lowest rates of interests in the entire mortgage industry and get their loan durations extended by up to 30 or even 40 years. Such a proposition could enable homemakers to reduce their monthly payments substantially and save hundreds of dollars every month. But to improve chances of a qualification, probable applicants must have documented their financial hardship situation properly by providing valid reasons for decrease in income such as job loss, rise in debts, adjustable rate mortgage, change in monthly income, etc.

Take Advantage Of The Relaxed Making Home Affordable Program Requirements Now

However, the making home affordable program requirements for home refinancing and loan modifications could be a little bit different. For example, to refinance homes at low rates with HARP funds, borrower must be current on his existing monthly payments for the past 12 months. Only one single payment default not exceeding a period of 30 days is permitted. On the contrary, to qualify for the HAMP, the applicant must have missed a couple of payments or must have determined the probability of being delinquent on installments soon. Borrowers, who are regular on their monthly mortgage payments, may not be eligible for a HAMP mortgage loan workout. Furthermore, in case of HARP, borrower could be able to refinance his home only if he owes more on his mortgage as compared to the current market price of the home to be refinanced. Besides, as per new HARP rules, there are no Loan-To-Value (LTV) restrictions in place.
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Tags:Home Affordable Modification, Making Home Affordable
Industry:Loans, Finance
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