Your Prayers For Low Cost Mortgage Loan Are Heard In The Form Of Making Home Affordable Program

The financial crisis that struck the real estate industry took its toll on the home owners too. Because of the problems the home owners faced with mortgage repayments, President Obama came up with a solution in the form of making home affordable modification program to rehabilitate the struggling home owners. It greatly helped those who had been struggling with debt payments. The home affordable mortgage modification program actually reschedules the monthly payments so that it may become easy and affordable for the home owner to repay the debt and also on timely basis.

The purpose is to keep the borrower afloat and far away from disclosure otherwise the lender would bear heavy losses. The program therefore was developed to help both the lender and the home loan borrower. Remember this is a loan modification program and is very different from refinancing. Refinancing required you to get a new loan whereas modification does not require you to do so. Home mortgage loan borrowers, especially those with bad credit, can apply for home affordable modification plan to keep them afloat. Following are the requirements necessary for the program application:

  • The loan must have been taken before the date January 1st 2009
  • The loan has to be under the amount of $729,750
  • Make home affordable modification can be applied for a single family home
  • Only a grace period is allowed after the due date has been past. More than 30 days after the due date and the plan is cancelled
  • The applicant needs to be residing in the property only then modification would be done to the mortgage loan
  • Necessary documents need to be provided to the lender that the borrower isn’t able to afford the loan at current rates
  • The property shouldn’t be used for commercial, luxury, or profit seeking purposes
  • The mortgage payments must be more than 31% of the total monthly income
  • Always make sure to provide the truthful information. You need to gain the trust of the lender so that you can gain negotiating power with the lender. You can get the key to happy future with making home affordable program.