Personal Information You Will Require For the Obama Refinance Plan

by Kevin Barry on May 1, 2012

Many thousands had started to lose their homes in the wake of the economic downturn in the US from about 2006, and the Obama refinance plan interventions were made to save the housing industry from complete collapse. Among the most well known programs is the Home Affordable Refinance Program (HARP) which was put out to give home owners a refinancing option with easier repayments.

The main target group that was to benefit from HARP consisted of those mortgage owners that could not approach a regular lender for refinancing. in the school. In this category there was a vast majority that was low on equity and required to both continue living in and own their homes.

What the HARP program as part of the Obama refinance plan intended to achieve was to give the mortgage owner a completely new mortgage agreement entered into with new repayment terms. It was expected to help the mortgage owner the opportunity to either make lower monthly payments or move into a more stable mortgage plan.

The three most significant qualifiers for anyone applying for a HARP loan is that first they should up to date on their repayments which is clearly detailed. The mortgage owner should not have a late payment in the six months preceding their application and should only have one late payment in the 12 months preceding their application.

The second qualifying characteristic for borrowers to benefit under the Obama refinance plan is they should have an LTV that is above 80% and 125% for HARP and HARP 2.0 respectively. The third qualifying characteristic is that their mortgage should be backed by either Fannie Mae or Freddie Mac.

As with all loan applications the bank or mortgage company takes the potential borrower through an evaluation process to ascertain their qualifications in much the same way as they had when the person took the mortgage the first time. Below you will find a couple of preparatory tips to help you have the information that they will ask for handy.

The first inquiry you should make is to call a bank near you to confirm that your mortgage is backed by Freddie Mac or Fannie Mae to get your first qualifying mark under the Obama refinance plan. Another efficient route to confirm the ownership of your mortgage is to visit the website of either one of the two companies. Once you have that important detail covered proceed to put your income and expenditure schedule in an easy to understand manner as this is the most critical data a lender will want to look through. Have close at hand pay slips, utility bills and other documentation on your income.

Major payments that are on your monthly expenses schedule such as fees for child support or college should be clearly indicated. The aim of this documentation is to show your ability to pay and at the last step be sure to include your assets including additional homes and such. Gather together any information that will add value to your application on the Obama refinance plan including other additional incomes and have documentation for all these to enhance your application process.

I’m a financial advisor specializing in FHA loans. Click here for more information.

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