Making Home Affordable is a new plan to help keep homeowners in their homes. One really great part of the plan includes a new refinance option for homeowners who are trying and keep their homes.

A lot of ideas surround helping homeowners who are in default or already close to foreclosure. Some loan modifications and short sales even require that homeowners be delinquent on their mortgage payments before being eligible and by this time it can be already too late to keep an owner in their home.

The difference in this plan is that it targets responsible homeowners who have paid their mortgages on time for the past 12 months. By doing that, it targets homeowners who aren't yet in trouble, making it more likely for a home to be saved. It also gives homeowners who bought in the past few years to upgrade to a fixed rate and a lower rate.

Another huge benefit of this refinance program is it allows up to 105% financing. Most people couldn't refinance because they purchased their home 0% down or little money down or their home value dropped too much.

This plan is brand new (our lender just released the guidelines April 7th) so some of the information may change or vary but here are some of the main guidelines:

1. No Cash Out. If you're looking to refinance cash out of your property, this won't be allowed under this.
2. Moderately Good Credit, Past Payment History. This means your credit score must be over 620, no late mortgage payments for the past 12 months, no bankruptcy history within 48 months, and no foreclosure in the past 7 years.
3. Documentation. The documentation requirements are pretty lenient requiring only 1 month pay stub, a verbal verification of employment or a year's worth of tax returns.

There are more rules and guidelines that require knowledge of your previous and other loans like subordination, original loan to value, etc. If you would like more information you can contact me and I'll be happy to answer your questions.