Q:

What is Obama's refinance program?

A:

Quick Answer

President Obama's refinance program is called Making Home Affordable. The program is designed to help individuals avoid foreclosure and lower mortgage payments by refinancing to implement modified loans.

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Full Answer

The Obama Administration announced the Making Home Affordable program in March 2009 with the goal of helping 9 million people keep their homes. As of July 2015, the program has helped 1.3 million homeowners, typically saving them around $500 per month, according to the Department of the Treasury and the Department of Housing and Urban Development.

To qualify for the program, the applicant must be current on mortgage payments and cannot have been more than 30 days behind on a mortgage payment in the previous 12 months. The home must be the individual’s primary residence and must be financed through a Fannie Mae or Freddie Mac loan, as noted by the Federal Housing Administration.

To apply, the applicant must contact his loan officer to start the application process. He must provide all information regarding his current mortgage, any second mortgage, and any other loan and line of credit. In addition, he must supply his most recent tax documents. His mortgage servicer must verify his income and ability to pay the modified mortgage payments, as noted by the FHA. If the applicant does not meet these qualifications, he may still be eligible for help through the Making Home Affordable program.

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