Loan Modification

Requirements to Qualify For An Obama Mortgage Refinance Loan

By Andrew

Requirements to Qualify For An Obama Mortgage Refinance Loan

Are you in trouble with your Mortgage, Loan or would just like to take advantage of the current Government?s desire to give borrowers a break on their mortgage? If that is the case you are far from alone. Although exact figures are hard to come by because a tracker system is yet to be completed, tens of thousands of people are queuing up to sign up for Home Refinance Aid packages. As often is the case with attractive programs and offers the Devil is in the detail of actually qualifying for the Home Loan aid.

This blog aims to simplify the jargon for you and give you the ?simple? facts on how to qualify for the Mortgage and Home Loan refinance aid the current administration is offering.
You must owe between 80% and 105% of your mortgage.

This has been a rather hot potato as many analysts believe that it is overly conservative and not very realistic when you take a look at the ?typical? borrowers that are struggling with their monthly payments. This is the case of ?underwater? borrowers that owe more than the value of their home and are well above the 105% bracket. In fact last Wednesday the Obama administration increased this bracket to 125%.

Nevertheless some commentators suggest that up to 26% of mortgage owners qualify in the United States based on this requirement alone. The same study revealed that 25% of home borrowers fall into the ?underwater? category and will not qualify for refinance aid under this plan. This is too bad for areas that have been specially affected by the Real Estate crisis like California where house prices have dropped by up to 40%.

Your loan must be backed by Fannie Mae or Freddie Mac.

You have a two in three chance of falling into this category around 60% of all United States home loans are backed by Fannie or Freddie. However most of us don?t know if that is the case or not. The fastest way to find out is to phone your loan provider.
Have a ?conforming? mortgage.

What does ?conforming? mean? It means a loan that is below the maximum set by the refinance aid program. In many areas the ceiling on refinance aid is set at $417,000. A special allowance is provided for high cost areas like New York, San Francisco and similar areas where the maximum is around $625,000. This is still rather restrictive for high cost areas like San Francisco where the average loan is closer to $725,000.

Do you qualify under these requirements? Whatever you think is the answer, if you need aid would recommend you contact your loan provider and ask for their professional opinion. The Mortgage Refinance program is constantly changing and expanding to include as many borrowers in need as possible.

The best advice you can follow is to start by getting your paperwork together before you contact your loan provider. This means putting together a file with your your driver?s license a copy of your Social Security card, two of your most recent pay stubs, your most recent mortgage statement, the past two years of your W2s, and past two months of bank statements from all accounts. This will speed up your request and allow your loan providers to have an accurate picture of the kind of customer you are and if you qualify.

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Related posts:

1. Mortgage Refinancing For Underwater Borrowers Now Available
2. Your Credit is Crucial – It Determines Your Refinance and Home Purchase Options
3. Orange County, CA & Other High-Cost Areas Get $729,750 Federal Loan Limit

1. Mortgage Refinancing For Underwater Borrowers Now Available
2. Your Credit is Crucial – It Determines Your Refinance and Home Purchase Options
3. Orange County, CA & Other High-Cost Areas Get $729,750 Federal Loan Limit

Full post as published by Blown Mortgage on July 07, 2009 (boomark / email).