Are you eligible for mortgage help?

Property owner status must be verified through a credit report and other documentation.

Other documentation you will need includes:

  • Information about a second mortgage on the house.
  • Credit card account balances and monthly payments due.
  • Account balances and monthly payments due on car loans, student loans, etc.

Can I take cash out of the equity in the home to pay other bills?
No. Only transaction costs can be wrapped into the refinanced amount.

What if I have a second mortgage on the property?
You still may qualify as long as the first mortgage does not exceed 105 percent of the property value and the second lender agrees to subordinate to the new first mortgage. In other words, the second lender has to agree that in the case of a default, the first mortgage would be paid before the second one.

When does the program expire?
The Home Affordable Refinance program expires in June 2010.

What are my options if I'm told I don't qualify?
Borrowers who do not qualify should work with their lenders to discuss other loss-mitigation options. These may include loan modification programs outside the Home Affordable Refinance program, such as standard refinancing or local resources such as rescue grants and loans.

Homeowners who cannot keep their home may also explore options other than foreclosure, such as short sales and deeds-in-lieu of foreclosure.

Where can I go for more information?
Talk to your mortgage lender or servicer, or visit, the government's official Web site for programs associated with the Making Home Affordable plan.  

Home Affordable Modification 

What does the program do for homeowners?
The Home Affordable Modification program lowers a borrower's monthly mortgage payment to as low as 31 percent of the borrower's gross (pre-tax) monthly income.

While lender participation mostly is voluntary, all financial institutions that receive government money from this point forward must participate.

Any institution that participates in the program must review every potentially eligible loan on which the borrower calls or writes to ask to be considered for the program.

Who qualifies for a mortgage modification under the new plan?
Homeowners who can demonstrate they cannot make monthly mortgage payments. They must be behind in their payments or at risk of imminent default on the mortgage.

Eligible mortgages must have been originated before Jan. 1, 2009. The borrowers must live in the home and it must be their primary residence.


Eligible mortgages also must meet the following requirements:

  • The maximum loan amount is an unpaid balance of up to $729,750 for a single-family home, $934,200 for a two-unit home, $1.129 million for a three-unit home and $1.403 million for a four-unit home.
  • The current mortgage payment (including taxes, insurance and homeowner association dues) must be more than 31 percent of the borrowers' gross monthly income.


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