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Obama Change Home Loan program can help you save your Home

March 2nd, 2011

The financial situation became so tough that Obama Administration came into picture and have to make necessary amendments and plans. The Obama mortgage modification Program and HAMP – Home Affordable Modification Program are such amendments. Some of the guidelines or qualifying criteria for both mortgage Modification programs are given below:

Obama Loan Modification Program:

If, the debtor is paying more than 38% of his monthly income as mortgage, the mortgaging company will have to reduce the ratio to 38%. Mostly, to do so the Loan companies either have to eliminate the interest rate and other charges, or they may raise the loan term. However, this mortgage modification can only be done voluntary by the lender.
The originating date of Loan must be before January 1, 2009.
The larger property or the property more than 5 units will be excluded from the Obama mortgage Program.
In case of Mortgage Loan, the home must not be an investment or rental property.
The borrower has to prove his inability to repay the loan amount or furnish the proofs that his liabilities are higher than his income.
The Loan amount must be less than $7,29,750.Home Affordable Modification Program

Under Home Affordable Modification Program, the borrower must be financially unable to repay the mortgages or may be under the risk of filing the Bankruptcy in near future.
The mortgage payer must be residing in the mortgage property only. It means the mortgage property must not be the source of income generation.
The mortgage loan must have been originated before January 1, 2009.
The principal amount of mortgage dues must not be greater than $7,29,750 for one unit property.Both the modify mortgage programs are intended to help the Americans, who are really not in the condition to support themselves and their family. With the assistance to the Ministry of Interior reported a change program, the borrower may be able to afford a home. While on the other hand, changes in mortgage program would reduce the financial burden by diverting and dividing it.

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5 Important Facts About Home Loan Modification Program

February 19th, 2011

Are you interested in the federal government home loan modification program? Well, you have come to the right place! Here are five things you really need to know about the new Obama mortgage loan program.

1. Who Qualifies For A Loan Modification A mortgage holder that is behind on payments can apply to a loan modification program. A mortgage holder that hasn’t missed payments but whose payment is more than 31% of their months wages. It’s only for those mortgages that are from Freddie Mac or Fannie Mae.

The $75 billion prevention foreclosure plan through the government is now open. Those who are having a hard time with payments can now receive help through the new loan mod program.

2. How Low Will The Payments Be With the new guidelines, mortgage payments can’t be lowered any more than 31% of your monthly income. So, the loan officers have to lower the interest rate to meet this requirement. The interest can’t be less than 2% of the entire mortgage loan. If they aren’t able to lower it enough by the interest rate, the term of the loan can be extended for up to forty years.

Your interest rate will stay locked at this rate for five years. Then the interest will go up one percent every year until its back to the original rate it was when you first had before the modification.

3. How The Government Will Help With Modifying Loans Under the new loan program, the loan officers only have to reduce your mortgage payments to thirty-eight percent of what you make a month. The government will then subsidize the loan so that you only have to pay thirty-one percent of your monthly income. Plus, the government gives out incentives to the banks so they will take part in the modification program.

4. You Have To Prove Hardship They are making sure that people signing up for loan modifications are not using it because they are just irresponsible. They make sure that people that have purchased investment properties, bought multimillion dollar houses or lied on mortgage documents will not be qualified.

Only those at risk can qualify for government assistance. You have to be able to prove one of the following:

*Decline in income *Serious hardship *High loan debt compared to your income *Increase in your expenses *Reasons for being very close to defaulting *You owe more than what your home is worth *You are facing an interest increase

5. Mortgage Modification Program Exclusions

Only those loans that were done before January 1 of 2010 are eligible. Loans that are on properties worth over $729,750.00 aren’t eligible.

If you can’t afford to make your mortgage payments, you just may qualify for the home loan modification program and then you will have mortgage payments you can afford. There are millions of people out there who are current in their payments, but have a hard time to do and there are some who missed one or more of their payments can qualify too.

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Indian Home Loan Guarantee Program (Section 184)

February 1st, 2011

The Indian Home Loan Guarantee program (section 184) was created in the year 1992 by the Congress. The program is meant to assist homeownership, refinance facilities and rehabilitation of property among Native American societies.

Indian Home Loan Guarantee Program (Section 184) was established by Congress in the year 1992 to assist homeownership, refinance facilities and rehabilitation of property in Native American societies. Authorized under the Housing and Community Development Act of 1992, it is a mortgage product particularly meant for American Indian families and Alaska Native families. It allows borrowers to procure a house with low deposit. Moreover, the underwriting is flexible and there is no monthly mortgage insurance associated with this program relating to housing loans. This Government loan can be borrowed from lenders that are certified by VA, FHA, Rural Development or other lenders who are administered, accepted, regulated or underwritten by any agency Federal Government agency.

The US government holds much of Indian land in trust. The land which is kept in trust for a tribe cannot be mortgaged; land which is set aside for an individual must have the approval of the Federal before mortgaging. Consequently, Native Americans traditionally have had restricted access to private mortgage resources. In 1992, the section 184 Government loan program was created to solve this problem.

The Indian Home Loan Guarantee Program (Section 184) can be used for the following purposes:

- Buying an existing home

- Building a new home

- Refinancing purposes

- Rehabbing and purchasing of loans

This program of housing loans is eligible for:

- An IHA or Indian Housing Authority

- An Indian tribe

- American Indians or natives of Alaska who are registered members of a federally documented tribe.

- Members of Alaska village and Regional Corporation recognized under the Alaska Native Claims Settlement Act

- A TDHE or a Tribally Designated Housing Entity

To meet the requirements for a housing loan, it is advised that the applicants discover if there are homebuyer education classes available. The classes prepare the applicants for the process of buying home and develop a better perception about the various tenets and qualifications as regards home loans. Application for loans can be made through a permitted mortgage lender. He will prepare all the documents and submit them to the ONAP or the Office of Native American Programs in Denver, Colorado for getting them approved.

This is how the Indian Home Loan Guarantee Program (Section 184) works. The HUD (Housing and Urban Development) guarantees the mortgage loan which is given to an eligible borrower. This assures the lender that the amount to be repaid in case it is seized. The borrower must pay 1% loan guarantee fee, it can be paid in cash or financed mortgage. Government documents required credits are then evaluated and then submitted for approval.

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Despite depressed domestic market, loan program Virginia Stands Strong

December 9th, 2010

In the current economy, many homeowners have not been fairing well. Homeowners who cannot make their monthly mortgage payments are becoming delinquent on their mortgages and facing possible foreclosures on their homes. But in the midst of the mortgage crisis, the VA loan program has still been successful. VA loans, which are exclusively available to veterans and men and women serving in the military, provide multiple benefits to borrowers that enable them to finance their homes and stay grounded in the struggling home market.

VA Loans Have Lower Delinquency Rates Compared to Other Home Loans

This type of financing remains a popular option for qualified applicants who want to finance their home in an affordable way. In 2009, the Department of Veteran Affairs guaranteed 325,673 VA loans, proving that the sinking economy was no match for the program. These loans have a delinquency rate of only 5 percent. This is quite low when compared to the delinquency of other types of home loans, which are as high as 30 percent! This shows that the VA must be doing something right with its home mortgage program to be able to maintain such a low delinquency rate.

Why VA Loans Continue to Be Successful

VA loans offer many benefits to both current homeowners and prospective homeowners that allow them to save money upfront and over the life of the loan. This type of financing is unique in that it does not require borrowers to make a down payment on purchases. Many lenders are reluctant to offer this type of incentive because they consider it to be risky in this unstable housing market. The elimination of the down payment saves first-time home buyers thousands of dollars in out-of-pocket costs, which allows them to have more money for other expenses associated with buying a home. Homeowners who already have a mortgage can refinance their loan into a VA loan to receive a lower rate, cash or to consolidate their debt!

Currently, mortgage rates are at historical lows, which makes now a great time for individuals to get a VA loan. Compared to other types of home loans, these loans can offer even lower rates. With a low rate, homeowners can reduce their monthly mortgage payment and have more money available for other expenses. This type of financing also does not require mortgage insurance, so borrowers can save even more money over time.

Eligible Applicants Should Take Advantage of This Great Opportunity!

This type of financing is also easy to use because it has lenient credit and income requirements; applicants do not have to have perfect credit to be eligible! This is good news for those who may have been turned down for a conventional loan. Applicants will need to have a credit score of at least 620, and they must have gone a year without overdue payments. Consider funding a VA loan to get a low rate and save money! Interested veterans and service members need to speak with a loan specialist to learn all its features and how they can get started today!

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VA Home Loans – Native American Direct Loan (NADL) Program

December 6th, 2010

The Native American direct loan is provided to the veterans who are part of Native American tribes and need the loan money to construct, repair or purchase a home on federal land.

The NADL or Native American Direct Loan is a government loan program that is made available to the Native American veterans who want to improve, construct or purchase home on federal land. In order to get this veteran loan your home must be your primary residence. However, a veteran can also use this loan program to re-finance an existing Native American direct loan.

The eligible candidates for this Native American direct loan program are:

— Veterans who served in the National Guard or reserve guard members who were called to active duty.

— Members of the active duty service.

— Current members of guard and reserve who have completed six years of reserve service.

Once discharged the commissioned officers of the public health service and the national oceanic and atmospheric administration who were active duty members are also considered for this loan program.

Period of service is a mandatory requirement in most cases. The veterans who have been discharged from their service under conditions apart from dishonorable deeds are eligible for this veteran loan program. Apart from these requirements, you must either be a Native American enrolled in an Alaskan native village or an American Indian tribe, a native Hawaiian or a Pacific Islander. You can also enjoy the benefits of this government loan program if you are married to such a person. In addition there must be a Memorandum of Understanding between the VA and the tribe. You will also require a COE or certificate of eligibility. You can get the certificate of eligibility directly from the VA officer or from a lender by using the ACE or Automated certificate of eligibility program. You need to download the application form 26-1880 from the official website, fill it and mail it to the eligibility center along with the required documents.

The maximum loan term of the Native American direct loan is generally thirty years with monthly payment dues. The rate of interest is fixed by the VA. The maximum amount provided by these Government Loans is similar to that of the single family conforming loan limit set by the Federal Home Loan Mortgage Corporation. If there is any increase in the loan limit it is published annually. The revisions are based on the adjustments in the conforming loan limit of Freddie Mac.

To summarize, the basic requirements of this veteran loan program include:

— The loan is only provided for the home that is the applicant’s primary residence.

— The home must be equal in value to the loan amount or higher
– The veteran must have sufficient income to meet monthly expenses, debts, mortgages and other commitments and still have enough to meet daily expenses.
– The veteran must have an impressive credit record.

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