Many people are facing problem for paying the monthly installments of their home loan. With recent economic crisis, it has become very difficult for the people to make the ends meet. It obviously becomes troublesome for the people to manage their household and pay the installments. In such case, loan modification is one of the best prevalent options these days. After doing hardcore economic analysis, Obama government decided to launch Obama refinance program wherein loan modification programs will be offered to the people who have been punctual enough to pay the monthly installments but are finding it difficult with the current economic slowdown. With the arrival of Obama government, there have been introduction of many new social and economic reforms. Such transformations in the economic policy have been made so that the citizens of our country can be benefited. The most important programs that fall in the plethora of such economic policies are loan modification program and Obama refinance program.
One of the most important points, which need to be put in limelight, is that: All single family residential real estate owners will not be benefited by the home loan modification program. However, the point that needs to be noted is that, Obama refinance program will bring a great sigh of relief four approximately 9 million of our country's citizens. The main emphasis which is led by Obama refinance program is to make the home loans affordable and to offer the best of the best deals to over 9 million of our country's citizens under loan modification program.
Overview of Obama Loan Modification Program:
Loan modification program that has been launched under Obama refinance program has some of the very good insights to offer. The main crux of Obama refinance program is to keep both the lenders and the borrowers happy, by providing both parties good incentives.
Obama loan modification program in a nutshell:
- Home loan lender will be given a payment of $1,500 payment from the federal government under Obama refinance loan, so that he can easily qualify the loan modification program.
- Home loan owner will paid a maximum of $1,000 annually for remaining current on the loan modification program.
- For the Obama refinance program, the federal government will provide a relied of almost, $10,500 per home. Consequently, it will support the borrower to lower his/her expenses to 31%, and it will be less than 38% of his gross income.
- The federal government will remain in consensus with home lender under the Home loan modification program.
Let us first of discuss, about some of the pre-requisites that are necessary to be qualified for the Obama refinance program.
Criteria to be satisfied under Obama Refinance Program 2010:
Following are the few pre-qualification that a home owner should fulfill in order to become eligible for Obama refinance program:
- Under, Home affordable refinance program, the lender should own the home and he should necessarily be the owner. His home should not be on some other person's name. He should owe all the necessary residential proofs.
- The home loan should be a conforming loan under Fannie Mae or Freddie Mac.
- The borrower should have paid his monthly installments on punctual basis. This means that no payment delays exceeding 30-days should be there in the last year.
- The home owner should have his financial report stating that he is capable enough to pay back the loan, with his monthly installments under Home affordable refinance program.
- Single family residential real estate strictly cannot avail the benefits of Obama refinance program.
You can genuinely be lucky enough to enjoy all the rights of being a proud home owner of your property. Obama refinance program, has fixed a certainty for both the lenders and the borrowers by introducing, Home affordable refinance program.