Making Home Affordable Program Launched
Posted by
on March 5, 2009
The details for the Homeowner Affordability and Stability Plan were released yesterday. The new title of the program is “Making Home Affordable.”
There are two components for home owners, refinancing and loan modifications. Participation is voluntary and the lender has to choose to participate. Details of both plans are below.
Borrowers who haven’t been able to refinance because their home value decreased now have an option to refinance into a 30 or 15 year, fixed rate loan.
Eligibility is as follows:
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Requirements for the loan modification program are:
The loan modification will lower the interest rate to make the payment (principal, interest, taxes, insurance, and home owners association dues) 31% of income. After five years, the rate will adjust 1% each year until it reaches the prevailing market interest rate on the date the modification.
In addition, there may be an incentive payment for borrowers for on time payments. Over five years the total principal reduction is up to $5,000.
Complete details, and a tool to find out if you are eligible, are listed at Financial Stability.gov or MakingHomesAffordable.gov:
I found an online form that calculated by eligibility for this plan. was the most useful thing I’ve found on this:
http://www.homeaffordplan.com
I apply for this program and was told that it was going to cost me seven hundred a month for four months. Is this true or not
hi, my question is about a house the my mom is buying, she did the contract before april 30 but the bank is taking so slow and we still not do the closing, and i wondering if she do the clising days one week after june 30 if is extantion for her to get the 8,000 first home buyer. can you please answer my question becuase i hear for other person they were trying to spread the law but and not sure. thank you a lot.
Right now there are not any exceptions for going past June 30. However, there are a few congressmen who have proposed making an extension for people in your mom’s shoes. Stay tuned to the news!