Today information was released on the new Homeowner Affordability and Stability plan from the White House.

This plan looks like it has some features that may just be what we need to help homeowners that have played by the rules but have not been able to refinance due to falling housing values.  In the past only homeowners that were behind on their mortgages were able to get a helping hand by the lender with a work out or a modification agreement, but now it looks like relief may finally be available to those that have not been able to refinance.

Will you be able to refinance your home if you are upside down with this new plan ??

Here are a few of the FAQ’s that outline what will be available to borrowers in this position:

• What help is available for borrowers who stay current on their mortgage payments but have seen their homes decrease in value?

Under the Homeowner Affordability and Stability Plan, eligible borrowers who stay current on their mortgages but have been unable to refinance to lower their interest rates because their homes have decreased in value, may now have the opportunity to refinance into a 30 or 15 year, fixed rate loan.   Through the program, Fannie Mae and Freddie Mac will allow the refinancing of mortgage loans that they hold in their portfolios or that they placed in mortgage backed securities.

• I owe more than my property is worth, do I still qualify to refinance under the Homeowner Affordability and Stability Plan?

Eligible loans will now include those where the new first mortgage (including any refinancing costs) will not exceed 105% of the current market value of the property.   For example, if your property is worth $200,000 but you owe $210,000 or less you may qualify.  The current value of your property will be determined after you apply to refinance.

To read more on the program you can access a pdf file HERE that outlines the Plan

The program and all eligibility requirements are set to be in place on March 4th, 2009.

The White House Blog Post on this can be seen at http://www.whitehouse.gov/blog/09/02/18/Help-for-homeowners/

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