What are the eligibility requirements to refinance under the Making Home Affordable Plan?
You may be able to refinance your mortgage under the Making Home Affordable Plan if:
• You are the owner occupant of a one to four unit home;
•The loan on your property is owned or securitized by Fannie Mae or Freddie Mac;
•At the time you apply, you are current on your mortgage payments (current means that you haven’t been more than 30-days late on your mortgage payment in the last 12 months or, if you have had the loan for less than 12 months, you have never missed a payment);
•You believe that the amount you owe on your first mortgage is about the same or slightly less than the current value of your house;
•You have income sufficient to support the new mortgage payments; and
•The refinance improves the long term affordability or stability of your loan.
Other Avoid Foreclosure FAQs
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Q:
What is a 'short sale'?
A: A “short sale” is an option for a homeowner to avoid foreclosure when they can no longer afford the mortgage on the home. In a short sale, a … More -
Q:
How do I know if my loan is owned or has been securitized by Fannie Mae or Freddie Mac?
A: You should call your mortgage lender or servicer (the organization to whom you make your monthly mortgage payments) and ask about the program. Both Fannie Mae and … More -
Q:
How long do I have to try to sell my house as a 'short sale'?
A: it depends on your lender's requirements and whether you qualify for any special government sponsored programs helping homeowners avoid foreclosure. … More -
Q:
I owe more than my property is worth. Do I still qualify to refinance under the Making Home Affordable Program?
A: You may still be able to refinance your home under the Making Home Affordable Plan even if you owe more than your property is worth. Eligible loans will include … More -
Q:
Can any property be sold as a 'short sale'?
A: typically, if there are any junior liens, mortgages or other debts against the property, those must be cleared first before the property can be sold as a … More -
Q:
Will refinancing lower my payments?
A: Refinancing your home often will lower your monthly payments. However, whether your payments are reduced may depend upon how your home is refinanced and whether … More -
Q:
Why Would a Lender Agree to a Short Sale?
A: Banks and other lenders generally agree to short sales in order to avoid having to foreclose on a property and take it into their inventory. Most lenders would rather … More -
Q:
Will refinancing my mortgage under the Home Affordable Refinance Program, or other programs, reduce the amount that I owe on my loan?
A: Refinancing your mortgage under the Home Affordable Refinance Program will not reduce the amount you owe on the mortgage. The objective of the Home Affordable … More -
Q:
What is a Short Sale?
A: A short sale is where a homeowner sells their home for less money than they owe on the property. The owner of the home negotiates a discounted payoff with their … More -
Q:
How do I apply to refinance my mortgage under the Home Affordable Refinance Program?
A: You should call your mortgage servicer or lender and ask about the Home Affordable Refinance application process. The number is on your monthly mortgage bill or … More
