Hope For Homeowners Update- A Step in the Right Direction

July 2nd, 2009 11:55 AM

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The government released a program a few months back called the Making Home Affordable Plan. This plan was quickly critisized for being, again, too little and too late. This plan would allow homeowners whose mortgages were backed by either Fannie Mae or Freddie Mac, to refinance to a new fixed rate mortgage even if their house was upside down, meaning they owe more than the house is worth. There are two main problems with this.

First of all, not everyone's mortgage is owned by Fannie Mae or Freddie Mac. This left many homeowners in the cold, still searching for help.

Second, they capped the amount that you could be upside down to only 5%. This means that if your house is now worth $100,000 you could anly have a mortgage of $105,000 or less. ( 5% more than the home value )

Yesterday Fannie Mae release an expansion to the plan that is sure to help many. They have expanded the ratio of loan balance to home value up to 125%. This is a great improvement. Using our example above if your home is currently worth $100,000 and you mortgage balance is $125,000 or less, you may qualify for this new refinance program.

The first thing you need to do if you want to see if your house will qualify is to find out if your mortgage is backed by Fannie Mae. Click on each of the link below and enter your information.

Are you Eligible?

If your mortgage is found to be owned by Fannie Mae, and you think your mortgage is 125% or less of the home value, give me a call and lets see if we can get this done for you.

I have attached the official announcement from Fannie Mae below for your review.

Please let me know if you have any questions or to stay informed, JOIN MY BLOG!

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