The Obama administration introduced the making home affordable program aimed at saving millions of home owners from losing out on their homes. Two sub parts of the making home affordable program are home affordable refinance program and home affordable modification program.

As per the making home affordable program guidelines an individual has to meet set parameters for qualifying for the federal making home affordable program. As per the home affordable refinance program an individual is allowed to refinance his mortgage loan at a lower rate of interest so that the monthly repayment amount becomes affordable and payable at the existing financial condition of the client. The home affordable modification program on the other hand reduces the total monthly mortgage payment to 31% of ones gross monthly income. This helps an individual pay off the mortgage loan without compromising on basic necessities. The federal making home affordable program utilizes modification plan to ensure that the mortgage loan is not higher than what the debtor is earning which will make it impossible for the person to pay off the loan.

Mortgage loan lenders also support the making home affordable program as it ensures that they get back at least a part of the money or the entire amount lent to the borrower's by reducing the interest rate or extending the period of repayment. However, one cannot benefit from the home affordable refinance program or home affordable modification program if the home owner has enough income to be able to pay off the debt without taking resort to the federal making home affordable program. Also if the mortgage loan is not guaranteed by Fannie Mae or Freddie Mac then the home owner will not qualify for the federal making home affordable program.

There are certain making home affordable program guidelines which can help a home owner qualify for the home affordable refinance program. They are:

- The home affordable refinance program being guaranteed by Fannie Mae or Freddie Mac.

- It will apply only to a home owner’s primary residence.

- On time payments of the previous 12 months mortgage loan to avoid late payment within the previous year.

- The total amount owed on the mortgage loan should be less than 105% of the existing market value of the property.

- Proof of stable source of income and employment need to be submitted to qualify for the refinance or modification mortgage loan.

The home affordable modification program enables lowering of interest rate by up to 2% - 5% and the term period of loan repayment can be extended up to 40 years. Qualifying for home affordable modification program requires the following guidelines to be met:

- Primary residence with mortgage loan of not more than $729,750.

- Total monthly mortgage loan repayment should not be more than 31% of the gross income.

- A hardship letter clarifying ones financial situation and reason behind debt.