Making home affordable program is a government program to help home owner stay in their home by refinance or modify their home loan to an affordable monthly mortgage payment. This program enacted by government in March 2009 as a part of Obama housing program to stabilize the housing market.
Instructions
1. Not all home loan qualify for making home affordable modification program, there are several basic requirements to qualify for making home affordable modification program. Not all lenders participate in this program either, however government gives incentives to the participating lenders. It's a win-win situation for home owner and lenders. Lenders or mortgage servicers help home owner to stay in their home by modify their home loan to an affordable mortgage payment, thus it help lenders to avoid further loss result from foreclosure.
2. To qualify for this program the home has to be home owner primary resident or owner occupy property, investment property doesn't qualify under this making home affordable program.
3. The loan amount on the first mortgage should be equal or less than $729,750. This making home affordable modification program only apply for first mortgage, if home owner also have the second mortgage or second liens against the property, home owner need to consult with the second mortgage holder separately for the loan modification or other option for the second loan. The second mortgage can be held by the same lender or different lender.
4. The current mortgage on the first lien need to be originated before January 1st 2009, and home owner first mortgage payment including principal, interest, taxes and insurance (PITI) is more than 31% of the home owner's gross monthly income.
5. To be qualified home owners also need to state the financial hardship they're currently facing to afford the mortgage payment. It can be from income reduction, increase in expenses (such as medical bills or credit card payments), change in familial status (such as new baby born), etc.
6. Most lenders will ask for supporting documents to give the final approval for making home affordable modification program. Most lenders also provide financial statement sheet that home owner can fill out to state their incomes, expenses, assets and liabilities.
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