With a slumping economy, the feds are once again stepping in to implement a program that will help bring down your mortgage to the equivalent of being only 31% of your gross income. Qualifying for this program isn't going to be an easy feat, however here are some tips to give you your best shot!
Know the Program! Obama's administration has implemented a $75 billion Making Home Affordable program. It will apply to mortgages held by Fanny Mae and Freddie Mac, with these two mortgage holders cutting interest rates down as low as 2%, in hopes of lowering mortgage payments to equal no more than 31% of your annual gross income.
Navigating the Process. When Frannie and Freddie own loans, they rely on commercial banks to handle all the homeowner paperwork, service the loans and the decision on who qualifies for this program. The point of this program is to modify loans to the point that allows borrowers to keep their head above water. You need to convince the bank that you're in dire enough financial turmoil for assistance, but not in deep enough to be considered hopeless.
Disqualifiers. One big disqualifying factor is the amount you have stashed away in savings. If you apply for this modification, but you've got a hefty chunk of change sitting in your savings account, changes are, you're going to be declined. However, going to the opposite extreme of having no savings, no job and no income will also disqualify you. Candidates must show proof of income and convince the bank that it is expected to remain steady for at least 9 months. If you're currently relying on unemployment benefits, don't think you're in the clear. Those programs typically last 6 months only, and the chances of being qualified using your unemployment money are slim to none.
Showing Just Enough Distress! The US Department of Housing & Urban Development has a network of free debt counselors to work with you and assist you with the application. The Homeowner's Toolbox, a former California mortgage broker, is free to users and claims to estimate the probability that a homeowner will be approved for a modification.
Contact us today: 214.923.0261 or email us: info@archwoodproperties.com
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