| Obama has signed off on a new mortgage stimulus | | | | been more than 31% of your gross monthly earnings |
| plan that should in theory give millions of homeowners | | | | - You have not been convicted of fraud in the last ten |
| the opportunity to refinance their mortgages at a lower | | | | years, deliberately defaulted on debts and haven't |
| rate with options to fix the mortgage at the new lower | | | | obtained a mortgage by deceptive means. |
| rate. | | | | - Must maintain a fully documented record of income |
| The 'HOPE for homeowners program' is a program | | | | and employment. |
| introduced by George Bush which looks at mortgage | | | | - must be prepared to agree to positive equity sharing |
| refinance for lenders that are in difficulty and are | | | | both current and future |
| struggling to make their repayments but have sufficient | | | | If you take this option you will not be able to take out a |
| income to meet the payments on a new loan insured | | | | 2nd mortgage under the program for the first 5 years |
| by HUD's Federal Housing Administration also known | | | | of the loan and you will have to agree to share the |
| as FHA. | | | | value of the positive equity, both current and any |
| This program clearly pre-dates Obama but is being | | | | future increases for your home on a sliding scale over |
| revisited in order to better meet the current | | | | 5 years, after 5 years the amount of your share in the |
| circumstances surrounding home ownership, this | | | | positive equity is 50% which is the most you can attain. |
| program should not be confused with the 'Making | | | | This may sound a lot but versus loosing your home it is |
| Home Affordable Program' that has different rules and | | | | probably a better option. |
| criteria to the 'HOPE for homeowners program' and | | | | To be eligible for the 'make home affordable' program: |
| until legislation has been passed that aligns the 2 | | | | - you need to own and occupy a 1 - 4 unit home |
| programs you need to be aware of the differences. | | | | - you need to be up to date on your mortgage |
| So what does this program currently offer: | | | | repayments |
| - a 30 year fixed rate mortgage | | | | - You must have a mortgage with or securitized by |
| - the possibility of refinancing to more affordable | | | | Freddie Mac or Fannie Mae |
| payments | | | | - The mortgage amount can be no more than 105% of |
| - voluntary basis for both the lender and the borrower | | | | the house value |
| Eligibility: | | | | It is immediately apparent that the requirements for the |
| - home must be your only house and primary | | | | make home affordable program appear to be less |
| residence | | | | stringent than the 'HOPE for homeowners' program |
| - your mortgage pre-dates 1st January,2008 | | | | and you do not have to commit any of the equity of |
| - can't make existing mortgage payments without help | | | | your home this program. |
| - from March 2008 your total monthly payments have | | | | |