If you were a homeowner around the market crash of 2008, you know how much of a troublesome time this was for many. Around the time of the election, President Obama proposed a plan to help any homeowners with their mortgage if they’ve kept on time payments. As a result, less homeowners would have to deal with a foreclosure and they could keep their homes with reduced rates. Obama refinance allows you to a loan modification to prevent foreclosures or defaults on the home. Make sure that you become well aware of different regulations before you decide to refinance.
Always Make Sure You’re on Time Paying Mortgages
Refinance methods require a very clean record with your mortgage. In the case of Obama’s plan, a quality mortgage record since the year of 2008 or 2009 is advised. When this type of plan came into action, they took into account mortgages around the time of the market crash. It’s best to show your entire record to the your lender and start building from that point. It’s also best to answer any general concerns your lender has to keep things running smoothly. Find out what types of requirements need to be met in your state.
FHA Requirements Are Similar to Obama Refinance
When it comes to getting federally backed loans, there are a few regulations that are required. One of the main things you should be aware of is how long you’ve stayed in your primary property. Like a federal loan, this kind of refinance requires the homeowner to stay in the primary property for a certain amount of years. A homeowner who’s in a conventional loan situation may not be up to par in this endeavor. It’s smart to contact your lender service and see what’s the minimum requirement for your state. Double check your position with those that can accept you into Obama’s program.You don’t want this to be the main reason why you cannot obtain this type of refinancing.
A Sallie Mae or Freddie Mac Loan Is Required for the Obama Refinance Option
If you’re under a typical loan service, it may hurt your eligibility for this program. Your best bet is to check with your lenders and see how you can start the process of receiving this particular refinance option. Also, both Sallie Mae and Freddie Mac have great sites to help you know if you’re approved or how to get approved. Your best bet is to contact a loan officer for eligibility requirements for your area. Also, you can go on the Sallie Mae or Freddie Mac site to fill out a loan application. Contact great lenders to help you get approved because you may have to re-apply depending on the information presented to you at the time of the loan process.
Why Is Loan to Value (LTV) Very Important in Obama’s Refinance Plan?
In any type of refinancing engagement, it is the lender’s authority to approve your request. Lenders need security due to the risk they take on letting your borrow from your credit, your equity, or just receiving cash. In the event you default or foreclose on the property, they want a safety cushion to land on just in case you happen to crash the plane they are riding. It’s extremely hard to recoup the costs on a home especially after a foreclosure. They may be tied up to bank fees for years. LTV is very important because it lets them know ahead of time if you situation is even worth pursuing. Make sure that you don’t use more than 20% if your equity. To really increase your chances of refinancing, use less than that percentage. It’s always to wise to have a stable credit score and a good amount of equity in your home before you refinance, anyway.
What Type of Documentation is Required?
Paperwork is also an important factor of getting your refinance option approved. In Obama refinance , you should have information on your current loan and a possible second mortgage, other forms of credit such as credit cards, and your most recent tax documents. Having information that is complete and correct will greatly increase your chances of getting approved for a refinance via Obama’s program.
Find out how to get on an Obama refinance plan through Sallie Mae or Freddie Mac. See what requirements you need to fulfill before your approval. Additionally, find out what alternatives you have in case you cannot get accepted to this particular course of action. Always do your research before hand to see if you’re even in a position for particular loan services to select you to refinance under Obama’s program.