Am I Eligible For The Obama Mortgage Relief Program?

Are monthly mortgage payments too overwhelming? For homeowners struggling to pay their mortgage each month, the Obama mortgage relief program may be the answer to their current mortgage problems.

The Obama Mortgage Relief Program

In March of 2009, President Obama created the Making Home Affordable Program. This program was started to help improve the current home market crisis. The Obama mortgage relief program was implemented to help struggling homeowners, who are behind on their mortgage payments, avoid foreclosure. Obama mortgage relief program was designed to lower mortgage payments by reducing the interest rates, so millions of homeowners could remain in their homes.

There Is Help For Homeowners.

An allotment of 75 billion was set aside to help from 7-9 million Americans reduce their monthly mortgage payments. The Making Home Affordable Program can lower monthly payments up to 50% and extend the terms of the mortgage up to 40 years. The Home Affordability and Stability Plan was created by President Obama to help responsible homeowners, who have shown that they are creditworthy by making their mortgage payments on time. This plan will reduce monthly payments by lowering the interest rate on the loan to the current market interest rate. This plan is also available to homeowners facing foreclosure. Factors such as job loss, medical reasons and mortgage payments resetting to a higher rate, can render a homeowner unable to keep up with their mortgage payments.

Am I Eligible For The Obama Mortgage Relief Program?

To be eligible for Obama mortgage relief program, a homeowner must show documented proof of income that is sufficient enough to make the new mortgage payments. The home must be their primary residence and refinancing can not exceed 105% of the current market value of the home. The original loan must be a FHA loan and your current mortgage payment must be more than 31% of your monthly gross income.

Eligibility and Incentives

To find out if you are eligible for the Obama mortgage relief program, contact a government approved counselor for advice. This service is free of charge. This government backed program offers incentive to both homeowners and lenders. Homeowners, who pay their modified mortgage on time for 5 years, will receive $5,000 to reduce their mortgage loan. The Obama mortgage relief program offers substantial incentives to mortgage lenders to encourage them to participate in this government program.

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