President Obama's Making Home Affordable Plan seeks to help up to 5 million homeowners facing the possibility of losing their homes because of unaffordable home loans to repay. The plan is funded by $75 billion dollars and provides a sole feature that pays lenders, servicers and borrowers to participate in the loan workout program. Here is some information or details on the plans major features and who will become eligible for this loan modification program called HAMP for short.

• The home must be the primary residence of the borrower and not condemned.
• The value of the present home mortgage should not exceed $729,500 for a single unit home.
• Your loan originated before January 1, 2009.
• The current monthly mortgage payments should be more than 31% of your gross monthly income.
• The borrower must be in financial hardship.
• Applicant must not be in bankruptcy.

The federal loan modification program is free of cost, and the Treasury Department is warning homeowners that paying anyone a fee to participate in the loan workout plan. Obama loan modification guidelines is used for diminishing the mortgage payment equal to 31% of the homeowner’s gross monthly earnings, to be derived by:

1. Lower interest rates up to 2%
2. Lengthening loan tenure to period of 40 years
3. Principal restraint
4. Principal exemption, with the lender's caution and voluntary