Are you upside down in your home mortgage? Are you struggling to make your mortgage payments? Is losing your home a possibility? If your home mortgage with Fannie Mae or Freddie Mac, you may be eligible for refinancing under the new Obama Housing Plan.  This plan, the Home Affordable Refinance Program (HARP) may help many borrowers to modify their current mortgage.  This program is targeting home owners whose houses appraised value took a dive.

Unfortunately, during the housing boom, many home owners bought houses at overinflated prices and at higher interest rates.  Thus, leaving them owing more than their house is worth and paying higher mortgage payments. But with interest rates lower, these homeowners may not be eligible for conventional financing because they owe more on their mortgage than their house is worth.  Does this sound familiar to you?  You are who this program is targeting.  Find out if you are eligible for this program. Here are some of the criteria:

  • Your mortgage must be owned or guaranteed by Fannie Mae or Freddie Mac.
  • The mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.
  • The mortgage cannot have previously been refinanced under HARP unless it is a Fannie Mae loan that was refinanced under HARP between March-May 2009.
  • The current loan-to-value (LTV) ratio must be greater than 80%. The LTV ratio is what your home is appraised at compared to what you owe.  If you owe $90,000 and your home is worth $100,000, your LTV would be 90%.
  • You must be current on your mortgage at the time you refinance, with a good payment history for the past 12 months.

You can call your mortgage lender to see if your home loan is with Fannie Mae or Freddie Mac and also if you meet the criteria for this program.  Many mortgage lenders do not participate in these programs, but at the, they will be more than happy to look at your present mortgage and determine whether you qualify.  What would lower mortgage payments mean to you?  By having extra money each month, you could use it for home repairs, buying another car or just breathing room.

Don’t feel like you are by yourself. Stop worrying about losing your home. There are many other people in the same situation. Be proactive today.  This program is there to help you make your mortgage payments easier to handle.