The Obama Administration’s Making Home Affordable plan has been introduced to help homeowners lower their monthly payments. If your current mortgage loan is owned or guaranteed by Freddie Mac or Fannie Mae, you might be eligible for assistance under this Home Affordable Refinance Program. To learn how to determine your eligibility and request refinancing, read on!
DETERMINE YOUR ELIGIBILITY
In order to be eligible to refinance under Making Home Affordable, your must meet all of the following criteria. Note that eligibility alone does not guarantee acceptance into the program. Your mortgage loan must be owned or guaranteed by Freddie Mac or Fannie Mae, and you cannot be behind in your mortgage payments
- You must be the owner of the home
- The home must have no more than four units
- The remaining principal on your mortgage must be less than 125% of the current value of your home.
ASSEMBLE THE REQUIRED DOCUMENTATION
Before you apply for refinancing, you’ll need to have the following information readily available. Create a folder and make sure you’ve collected all of the required documents before going to Step 3.
- A copy of your monthly mortgage statement
- 1-2 months worth of recent paystubs, along with documentation of any other sources of taxable income
- Information on and second mortgages or home equity lines of credit for your property
- Copies of all of your credit card bills, showing the account balances and minimum monthly payments
- Copies of any other monthly debt payments, such as car payments or student loans, showing the balance on the accounts and the monthly payments
CONTACT YOUR LENDER
Look for you mortgage lender’s telephone number on your payment book or monthly statement. Indicate that you’d like to apply for the Home Affordable Refinance Program. If your loan is owned by Freddie Mac or Fannie Mae (see Step 1), then your lender is required by law to offer you the refinancing opportunity. For contact information on your loan servicer, see the link in the Resource section below. If you prefer to discuss your options with a government representative before talking with your lender, you can contact (for free) a HUD-approved counselor who will walk you through the process. Your counselor can even contact your lender on your behalf. For contact information , see the link in the Resource section below.