Details of the Recovery Initiative
When the White House first introduced the Making Home Affordable program, it was positioned as a mortgage program with two goals:
- To help financially-needy homeowners get mortgage relief
- To help homeowners who've lost equity qualify for today's low rates
On March 4, 2009 the U.S. Treasury introduced new details about Making Home Affordable.
It also created a basic Q&A of the two programs to see which one a homeowner may qualify for.
The Treasury detailed the President's original blueprint. Namely, it provided explicit loan modification instructions that will assist up to 4 million delinquent homeowners and their respective mortgage servicers. The modification guidelines are a thorough 17 pages long and leave little question about the loan modification process, and how it must be carried out. Click here to view the detailed loan modification guidelines.
The refinancing element of this plan allows for rate and term refinances to a 105% loan to value. Loans must be currently guaranteed by Fannie Mae or Freddie Mac, be in good credit standing, and meet present qualifying guidelines. It must be a primary residence, with a balance not exceeding $729,750 for a one unit property. This will allow a large number of homeowners seeking to cut their monthly expenses, and benefit from the lower home loan rates available today.
These programs are new and some of the details are still being worked out. Please feel free to contact me if you have any questions or would like an update.