President Obama’s Home Affordable Refinance Program offers a unique opportunity to distressed house makers who have gone upside down on their existing home mortgages and are now faced with possible home foreclosures and financial hardships too. By using this federal plan, which is available in two types, struggling homeowners can either secure a home mortgage modification or refinance their current mortgages with mortgage rates as low as 2%.

President Obama’s Home Affordable Refinance Program Guidelines offers a unique opportunity to distressed house makers who have gone upside down on their existing home mortgages and are now faced with possible home foreclosures and financial hardships too. By using this federal plan, which is available in two types, struggling homeowners can either secure a home mortgage modification or refinance their current mortgages with mortgage rates as low as 2%. But to be eligible for a home mortgage loan refinance or modification under the government scheme, borrowers are required to satisfy certain conditions laid down by the rules and regulations of the Obama stimulus plan.

To qualify for the Obama stimulus package plan, a borrower needs to satisfy the Obama loan modification plan guidelines which are mentioned below.

1. The existing home mortgage has to be sanctioned on or before 1st January, 2009.
2. The house to be refinanced should be the primary residence of the applicant.
3. The value of the current mortgage should not exceed $ 729,500 for a single unit home.
4. An applicant needs to furnish a letter of listed financial hardships along with the reasons.

If you qualify for the federal home affordable modification program or refinance plan, you could secure the following benefits.

1. Your monthly mortgage payment could be less than 31% of your gross monthly income.
2. Banks and mortgage lenders would reduce the mortgage rates to as low as 2%.
3. You would not be required to pay any processing or closing fees for modifying or refinancing your home mortgages.
4. By staying current on the new monthly mortgage payments you are eligible for a reduction of principal loan balance up to $ 5000 over a period of 5 years.
5. The lower rates of interest would remain fixed for a term of 5 years.

However, households are entitled to get a loan modification or a home mortgage refinance loan only once under the Obama stimulus package plan. Hence, it is important for you to make the best of opportunity. Apart from helping homeowners to save their homes, the federal program is aimed at stabilizing the plunging housing market. Besides, if you are eligible for the government plan, you could be able to save thousands of dollars over the long run.

Even if you fail to qualify for the federal program, there are plenty of other mortgage refinancing options available to house makers with a bad credit. An expert guidance could be of immense help in exploring the different alternatives and availing a bad credit mortgage refinancing loan as per your financial needs and requirements. To get more information on loan modification or mortgage refinance loans, it is hereby recommended to utilize the professional services of reputed online service providers like LoansStore.