Obama Mortgage

The Obama mortgage plan has created mortgage relief and refinance opportunities with 125% loans for homeowners who saw their home equity diminish to point they were unable to refinance with conventional mortgages. Obama loans became the talk of the mortgage industry in 2009 because they gave hope to borrowers who found themselves upside down with their house worth less than their mortgage. The Home Affordable Refinance Program is a 125 mortgage that enables a rate and term refinance up to 125% of the home’s present value. FHA Mortgage Refinanced Loans is one of the few FHA lenders offering the Home Affordable Refinance loans to homeowners who meet the HARP lending criteria. Borrowers must have a Fannie Mae or Freddie Mac mortgage.

Is Your First Mortgage Principal Greater than the Present Value of Your Home?

National Mortgage News reported last month that Federal Housing Administration-insured loans have gained a market share greater than 10 percent, a big jump for an agency overshadowed during the housing boom. "Since September 2007, FHA has helped pump more than $76.1 billion in mortgage activity into the housing market," FHA Commissioner Brian Montgomery said. That figure includes $30.3 billion of loans to conventional borrowers who refinanced into FHA loans to avoid a huge jump in their mortgage payments when their old loans reset.

125% Loan Refinancing with Fannie Mae or Freddie Mac Loan Alternatives

"The Obama mortgage provides renewed hope for homeowners they have not been able to refinance their home loans because of the recent housing debacle. Millions of Americans lost their home equity between 2006 and 2009 as home values slid and the foreclosures hit record numbers each year. The Obama loans went a step further than Hope for Homeowners and the FHA Secure Refinance programs. The Obama mortgage plan unveiled the Home Affordable Refinance Program in 2009 and these 125 loans sparked a government refinance alternative with great fixed mortgage rates and no equity required.

The 2010 FHA loan limits will be available up to $625,500 in high-cost regions nationally. If you already have a government home loan like an FHA or VA, you may qualify for a streamline refinance that requires no appraisals. The government agreed to buy bad mortgage debt to be insured by the Federal Housing Administration or purchased by Fannie Mae and Freddie Mac.

Now is the time to refinance into an Obama mortgage or FHA loan. FHA Secure finally expire on December 31, 2008. You'll still be able to refinance under the second foreclosure rescue plan, HOPE for Homeowners, but you'd have to share your equity with FHA and the loan limits will be dropping soon, as well.