Curious if you’re eligible for assistance via the new Making Home Affordable program? Wonder no more.
The government launched a new website, conveniently named MakingHomeAffordable.gov, which allows borrowers to determine if they can take advantage of the refinance and loan modification programs currently on offer.
To find out if you’re eligible, you just need to answer a few basic questions such as whether the property in question is your principal residence, when you received the mortgage, and what your debt-to-income ratio is.
If you do indeed qualify, the website will provide a checklist of items necessary to complete a loan modification or a refinance, at which point you’ll be directed to get in contact with your mortgage lender or loan servicer.
Keep in mind that to take advantage of the Home Affordable Refinance, your mortgage must be owned by either Fannie Mae or Freddie Mac. If you’re not sure, you can look it up here (Fannie Mae) and here (Freddie Mac).
To take advantage of the loan modification program, you must have a conforming loan amount and you must be “having trouble paying your mortgage,” meaning mortgage rate reset or some kind of financial distress.
Neither program provides relief for jumbo or underwater borrowers, those some argue are the most in need.
Even if you aren’t eligible, you should still contact your loan servicer about available alternatives if you believe you’re in need of assistance.
The website also has a “payment reduction estimator,” which will show you what your new monthly mortgage payment will be if you qualify for a loan modification.