Find Out If You Qualify For A Federal Home Mortgage Refinance Loan Today

July 1, 2010 - PRLog -- The program is basically designed to provide the much needed financial relief to homeowners who have been facing financial hardships and are at the risk of losing their homes to foreclosures. But to avail the refinancing benefits under the federal program, it is imperative for a borrower to qualify for the federal scheme.

There could be borrowers who have gone upside down on their existing mortgages and might be often given to the thought, “Should I refinance my mortgage?” The answer is yes, do it right now. With home mortgage rates at amazing lows, it’s the most opportune time to refinance your current home mortgages which could help you to save thousands of dollars on your monthly mortgage payments in the long run. Furthermore, President Obama’s “Homeowner Affordability and Stability Plan” (HASP), which is backed by  $75 billion stimulus package, is designed to provide the much needed financial relief to homeowners who have been facing financial hardships and are at the risk of losing their homes to foreclosures. But to avail the refinancing benefits under the federal program, it is imperative for a borrower to qualify for it. Here is some crucial information pertaining to the eligibility requirements as per guidelines of the FHA refinance program.  


Who can be eligible for home refinance under the Obama plan?

To determine your eligibility, borrowers need to understand the main provisions of the federal scheme.

Main features of the Obama refinance program

1. To qualify for the Obama refinance plan, your current home mortgage loans should be backed by either Freddie Mac or Fannie Mae and the value of your existing mortgage must not exceed $729,500 for a single unit home.

2. The LTV limit has now been raised to 105% of your home mortgage. Hence, if you have a Loan-to-Value ratio of 80% to 105%, you could be eligible. But in case you are “underwater”, and you owe more than 105%, it could be hard for you to qualify for the federal program and thereby explore other possible options offered by private mortgage refinance loan lenders who offer no credit check mortgage refinance loans which do not require credit verification.  

3. If you have a home equity which is less than 20%, you are eligible to refinance your existing mortgage at the current prevailing mortgage rates subject to the condition that the above mentioned LTV requirement is satisfied.

4. Your current home mortgage loans should have been sanctioned prior to 1st January 2009 as per guidelines of the program as it would be in effect until the end of 2012 and the loans could be refinanced just once.  

5. Borrowers who maintain regularity in paying monthly mortgage installments on new loans are entitled to receive an incentive of $1,000 every year, from the federal government, by way of reduction in the loan principal for a period of five years.

6. Once qualified for the government refinance plan, you could secure lowest refinance mortgage rates. Besides, because of subsidies granted by the federal government, your monthly mortgage payments could get reduced to 31% of your gross monthly income.  

So check out if you qualify for a federal mortgage refinance today! :  [ http://www.obama-loanmodifications.com/loan-modification-... ]

To know even more and to get critical information pertaining to documentation which is required to be submitted along with the home mortgage refinance loan application, it is recommended to utilize the professional services offered by reputed online service providers like LoansStore that could enable you to secure proper expert guidance.

# # #

Get Detailed information on refinance like mortgage refinance loan, home mortgage refinance, bad credit mortgage refinance, second mortgage refinance, home equity line of credit and many other refinancing form http://www.loansstore.com/mortgage-refinance-loans/