The Housing Market Suffered A Dramatic Collapse Due To Irresponsible Lending. Responding To This Huge Challenge, President Obama Called For A Universal Refinancing Program Which Got Christened As Obama Universal Mortgage Refinance Program
President Obama overcame quite a lot to pass and sign into law, the most sweeping financial reforms since the Great Depression and established a new supervisory body to enforce the strongest consumer protections in history. Obama universal mortgage refinance program actually brought in reforms that hold Wall Street accountable. It ensures that responsibility is rewarded and everyone plays by the same rules, universally. HARP(Home Affordable Refinance Program), as it is better known, has been a vital part of the Obama Administration’s all-inclusive effort to provide relief to families facing the risk of foreclosure for their homes. It is also further expected to help the housing market recover from a historic housing crisis.
Homeowners who are striving to hold on to their homes, in a situation where homeownership is increasingly becoming unaffordable, can very well benefit from this Obama mortgage refinance program. Even after failing to get conventional refinancing, inspite of being regular on mortgage payments, they can apply for HARP 2.0 of MHA(Making Home Affordable) program. HARP refinance was designed to help borrowers across the country to refinance for a better, more affordable loan plan, when refinancing was beyond their reach due to the declined home value. The Obama administration effected some changes to its eligibility guidelines to make it more feasible for a greater number of distressed homeowners.
Obama Mortgage Refinance Program allows borrowers to refinance even when they are in the deep with underwater mortgages. This would allow a borrower to make payments that are more compatible with the present valuation of the home. Moreover, the monthly repayment plan would be more in accordance with the repayment capacity of the borrower.
While applying for a refinance, some guidelines that apply to this program should be borne in mind. To qualify for the program,
- Freddie Mac or Fannie Mae should own and back the present loan.
- Fannie Mae or Freddie Mac should have taken responsibility for your loan on or before May 31, 2009.
- The mortgage shouldn’t be a HARP refinanced one, unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009.
- The ratio of the amount of the loan to the value of property (LTV ratio) must be greater than 80%.
- The payment history of the past 12 months should be impeccable.
The eligibility criteria and benefits for the plan can be better understood with the help of expert guidance. Some websites have lots of resources in the form of competent professionals and experts of this field. Websites like www.mortgage-refinanceprograms.com offer good reading on the Obama universal mortgage refinance program.