Obama's Government has come up with Housing Stimulus Plan for all the homeowners so that they can refinance their mortgage and get a loan modification done to save their homes. Government has decided to give $ 75 billion to help all the homeowners avoid foreclosure. This housing stimulus plan money will help to homeowners in Loan modification process and refinance to make their home mortgage cheap and payable.
All the homeowners who are using their property as their primary residence and not for investment purposes can apply for the following two programs, but one thing that needs to be noted is that not all homeowners will qualify for the two programs offered by housing stimulus plan and only genuine and needy people would get the benefits.
How Obama's Housing Stimulus Plan would help you in Home Refinance and Loan Modification:
1. All mortgages which are held by Fannie Mae and Freddie Mac would qualify for the program. You can get your mortgage refinanced on new terms and conditions which would make your home loan affordable. The Obama's stimulus program is going to refinance your loans at a lower rate and would also offer extended tenure to repay the loans. With refinance, one can get the adjustable rate mortgage converted to a fixed rate mortgage.
2. In Loan Modification, you can get your mortgage modified on a lower rate to reduce the EMI. Along with this, there would be a waiver in the late fee and principal amount would also be reduced.
3. Obama's Housing Stimulus Plan is offering $ 1000 as incentive for every loan modification and refinance to all the lenders and same amount of money is offered to all the homeowners who opt for any of these two programs.
4. According to Housing Stimulus Program, both these programs are going to help millions of homeowners and all that $ 75bn offered by the government would make it easy for the lenders to refinance the loan and do a loan modification.