The Making Home Affordable Program

President Obama recently announced the Administration’s plan to further prevent foreclosures and assist borrowers with mortgage loan modifications in our country. Most major lenders have already have taken steps to prepare for changes needed when the details of the Plan are finalized. Please be patient when contacting your mortgage servicer or a local housing counselor as they will probably experience high call volumes resulting from the Administration’s announcement.

The Making Home Affordable Program has two main features: the Home Affordable Refinance option and the Home Affordable Modification program. The new refinance option will allow qualifying borrowers who owe more than their home is worth but who are still current on their mortgage payments and can prove their income the ability to refinance and take advantage of the historically low interest rates currently available.  The new modification program may help those remaining borrowers who have not been delinquent on their mortgage but do not fit the guidelines for the refinance program.

Both programs should become available shortly after April 1 of this year and should be available through your current mortgage servicer. To figure out whether or not you may qualify for either program, please use the self-assessment tools provided on the government's website at MakingHomeAffordable.gov

 Home Affordable Refinance Program - HARP

If you are a homeowner who is current on your mortgage payments but may not be able to take advantage of the historically low interest rates now offered due to a decrease in your home's value, then you may qualify for this program.

As part of the Making Home Affordable program, Fannie Mae is offering refinances of existing Fannie Mae loans. The goal of the refinance initiative, as announced by the President, is "to provide access to low-cost refinancing for responsible homeowners suffering from falling home prices." The expectation is that refinancing a Fannie Mae loan will put responsible borrowers in a better position by reducing their monthly principal and interest payments or moving them from a more risky loan structure (such as interest-only or short-term ARM) to a more stable product.

Highlights of the program

• A solution for borrowers with loan-to-value (LTV) ratios above 80 percent who currently may not be able to refinance because of existing mortgage insurance (MI) coverage requirements
• Borrowers may now refinance (limited to no cash out transactions only) their mortgages up to 125 percent of the value of their home - for an approximation of your home's value try www.zillow.com or www.cyberhomes.com
• This program will only be eligible for first liens that fall within Fannie Mae and Freddie Mac loan amount guidelines (loan amounts up to $729,750 for Santa Clara County)
• Current loan must be owned by Fannie or Freddie - click here find out who owns your mortgageInterest rates - current interest rates offered for a new 30 year fixed rate mortgage through this program are between 4% and 5% for loan amounts of $417,000 and below and between 5% and 6% for loan amount above $417,000 to $729,750

Applying is easy 

If your mortgage meets the criteria listed above and you would like to take advantage of this limited opportunity, please apply now and we'll quickly respond with your financing options.

 Home Affordable Modification Program - HAMP

If you can no longer afford to make your monthly loan payments, you may qualify for a loan modification to make your monthly mortgage payment more affordable. Millions of borrowers who are current, but having difficulty making their payments and borrowers who have already missed one or more payments may be eligible.

The Home Affordable Modification program creates a defined loan modification process through which borrowers who are in default, at risk of imminent default, or in foreclosure can have their loans modified to a more affordable monthly payment equal to a target 31 percent of their monthly gross income.

Highlights

• A solution for borrowers who have fallen delinquent on their current mortgage, or for those who are still current but do not qualify for the Home Affordable Refinance programs
• Possible modifications include principal reductions, interest rate reductions to as low as 2%, and loan term extension for as long as 40 years.
• This program will only be eligible for first liens that fall within Fannie Mae loan amount guidelines (loan amounts up to $729,750 for Santa Clara County) that were originated prior to January 1, 2009

The Home Affordable Modification program, which expires on December 31, 2012, replaces the Streamlined Modification Program (SMP) introduced in Announcement 08-33, dated December 12, 2008, and the Early Workout program (EWP) announced in Announcement 08-31, dated December 8, 2008.

Downloadable Resources:

Please feel free to contact us for further information or with any questions on the resources provided below.