Are You Eligible for Mortgage Help?

President Barack Obama's Making Home Affordable program is intended to rescue the nation's failing housing market. It has two separate but closely linked components.

The Home Affordable Refinance and the Home Affordable Modification plans are both designed to help struggling homeowners by making their monthly payments more affordable through loan restructuring.

Both programs require homeowners to demonstrate financial hardship that makes it difficult for them to meet their mortgage obligations.

The following questions define the requirements of each program.

Home Affordable Refinance

What does the program do for homeowners?
The Home Affordable Refinance program allows borrowers to refinance into a 30- or 15-year fixed rate loan even if they owe slightly more on their mortgages than their homes are worth.

The new rate will be based on market mortgage rates at the time of the refinance, as well as associated points and fees determined by the lender.

Who qualifies for a refinance under the new plan?
Homeowners with a conforming loan owned or securitized by Fannie Mae or Freddie Mac. The first mortgage on the home cannot exceed 105 percent of the current market value of the property.

Homeowners must be current on their mortgage payments, and the mortgage must have been originated before Jan. 1, 2009.

Who Doesn't Qualify
Borrowers must live in the home in question, which must be a one- to four-unit property, and it must be their primary residence. They also must have income sufficient to support payments under the new loan terms.

Others who do not qualify include:

• Borrowers who have loans that are not owned by Fannie Mae or Freddie Mac. This includes homeowners with jumbo loans.
• Borrowers whose first mortgage on the home exceeds 105 percent of the current market value of the property.
• Borrowers who do not make enough income to afford the new mortgage payments.
• Investors.

How can I find out if I meet the qualifications?
To find out if your loan is owned by Fannie Mae, call (800) 7FANNIE, or (800) 732-6643, or visit Fannie Mae's Web site. To find out if your loan is owned by Freddie Mac, call (800) FREDDIE, or (800) 373 3343, or visit Freddie Mac's Web site.

You can also call your loan servicer to find out if your loan is eligible for the program.

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