Even though the economy and housing market are in bad shape, getting help to save you home from being lost to foreclosure or mortgage modification is easier than ever. New Government stimulus programs allow millions of homeowners new mortgage refinancing or modification opportunities which allow them to save money, their home, or both.

Although, regardless of payment history, there is other refinancing options available. The administrations outlined estimates say that this stimulus plan will benefit as many as 9 million current mortgage holders, and has 2 main components to it. First, mortgage lenders, banks, and other financial services offering mortgage refinancing will be offered incentives and other subsidies from the government to loosen up the refinancing requirements for homeowners who are having financial difficulties that are so bad that losing their home is a serious risk. These borrowers will have to sign financial hardship affidavits to this effect detailing their hardships. For doing this, homeowners can see their current interest rates drop to as little as 2%, their mortgage lengthened, or other methods to bring down the monthly mortgage payment to 31% of the homeowners gross monthly income. This stimulus plan will be limited though to first lien mortgages only with mortgage amounts that do not exceed $729,000 for a single family home.

Mortgage lenders, banks, and other home loan providers will also get up to $3500 from the government to participate in this program as well as matching portions of the mortgage lenders or banks costs dollar for dollar in some circumstances. Homeowners are also eligible to get up to $5,000 in federal money to help reduce or pay off other outstanding balances as a way to ensure they do not lose their home later down the road. Also noted by Obama administration officials was the fact that people who purchased homes as investments and not primary residences are not eligible.

Also, as a response to the millions of struggling homeowners who need help, President Obama has announced his „Making Home Affordable“ stimulus plan. This $75 billion program allows homeowners in all types of bad situations to get the help they need to save their home. When a mortgage lender or bank approves a homeowner using this plan and following its guidelines, it will receive a cash incentive. This money allows them to assume more risk, and approve more homeowners for refinancing or mortgage modification, even if they are having financial or mortgage problems. The lender or bank who approved a homeowner for refinancing or modification will receive yearly bonuses, for up to 5 years, every year a homeowner is able to successfully make their payments on time and in full. This means that all types of struggling homeowners are now getting truly beneficial refinance or home loan modification options.

Qualifying for the Government programs like Obama home refinance program is pretty easy to do. Homeowners who have lost a job, or other similar financial problems will most likely be able to use this plan for mortgage refinance or modification themselves. Also, homeowners already in foreclosure or who have missed payments, can get help using this plan. Even homes that have dropped in value can get approved through these Government programs. Millions of homeowners are able to use this stimulus for themselves, and save their homes. Contact your lender or bank today and see how President Obamas „Making Home Affordable“ plan can work for you.

Learn more about Obama Mortgage Relief Plan Qualifications.