President Obama $275 Billion Housing Plan 80% of Americans Refi See if You Qualify for Federal Stimulus Mortgage Help

March 5, 2009

Americans are owing more than their homes are worth as reported by a major mortgage tracking company evolving into what is currently called Upside Down mortgages.  President Barack Obama's $275 Billion Stability Plan who the U.S.Treasury Secretary Geithner help to structure parlays $75 billion toward helping homeowners in good standing who mortgage loans are in default or about to go into default with loans held by Fannie Mae or Freddie Mac.  There are stipulations involved in qualifying for the federal housing plan such as the home must be owner-occupied and the borrower must have an income viable enough to pay for the refinanced mortgage.   The borrower can not owe more than 105 per cent of their home's value on their first mortgage.  These distressed home owners must apply for federal help before June of 2010.

  The good news about the federal housing plan is that the homeowner does not have to be behind on payments to take advantage of the federal help.  The homeowner can be on the verge of losing the home or the loan may be about to be in default.  The federal housing plan is for mortgages made before January 1, 2009.  Homeowners who are in default of their mortgage loans and purchased their homes after January 1, 2009 will not qualify for help from the federal housing plan.

Mortgage owners should contact their lenders or mortgage loan officers to see if they quality for the federal housing plan.  The refinancing program is only available for mortgage loans finances who have home loans or mortgages with the two major federal lending agencies, Freddie Mac or Fannie Mae.  The federal housing plan leaves out many home owners who homes have lost too much value contingent on who their home loan is financed with and when the mortgage loan was made.

Earlier News of President Barack Obama's $275 Billion Housing Stability Plan

If you are behind on your mortgage monthly payments or are struggling to keep your monthly payments current, you may qualify for provisions in President Barack Obama's Housing Plan set to be approved March 4, 2009. You may even qualify for a mortgage remodification under President Barack Obama's $275 billion housing plan. Here are the stipulations, qualifications and eligibilities for mortgage relief under the housing plan.

1. Your house must be your primary residence.

2. Your monthly mortgage payment must be greater than 31% of your monthly gross income.

3. Your housing loan must not exceed current Fannie Mae and Freddie Mac loan limits which varies from region to region and caps out at nearly $729,750.

4. Only first mortgages are eligible for modifications under President Barack Obama's $275 billion housing plan.

5. If you can not refinance into lower interest loans because your home value has fallen, you can refinance with a 30 or 15 year fixed rate under the housing plan. The loan have been must be guaranteed under Freddie Mac or Fannie Mae.

6. You can not owe more than 105% of your home's current value on your first mortgage.

7. Under the $787 Billion Stimulus Plan that was signed February 17, 2009 in reference to housing, allowance is given to first time home buyers who purchased their home between Jan 1 and Dec 1. This eligibility requirement give families a tax credit of 10% of the value of the home, up to $8000. The tax credit would have to repaid if their homei s sold within three years.

8. Make your home more energy efficient and you can get a tax credit of up to $1,500 between this year and next year. Projects that qualify for the "green" home tax credits include installations of energy efficient windows, doors, furnaces or air conditioners.

9. If you install energy efficient equipment in your home, you may get back 30 percent of puchased expenses, up to $1,500.

10. If you qualify for the housing relief of President Barack Obama's $275 billion housing plan, you may refinance your mortgage loan or modifiy your mortgage loan commencing March 4, 2009. The first time home buyer tax credit will be in effect from the first of the year through the end of November. The "green" home tax credits for making your home energy efficient with improvements will be effective through 2010.

11. Check your eligibility for President Barack Obama's $275 billion housing plan by gathering up the necessary financial documents for your lender. You will need your most recent pay stubs and/or other documents of income you have received. Gather your most recent tax return, information about your second mortgage if you have one, and payment information on your credit cards if a monthly balance is carried. In addition to these documents, you will need to provide your lender with information on all other loans such as student loans and car loans,

12. If you are facing foreclosure and can not wait until March 4, 2009 to refinance or modify your mortgage loan, contact your mortgage servicer or mortgage lender immediately. Many lenders have promised to forego on home foreclosure sales on home loans that could qualify for the housing plan modifications until March 4, 2009.