If you want to take advantage of the Obama mortgage refinancing option under the Home Affordable program, you'll be subject to an initial screening questionnaire to determine your eligibility for the Obama mortgage homeowner bailout program.
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All About the Obama Mortgage Questionnaire
Do you have a Fannie Mae/Freddie Mac home loan? Or a conventional mortgage?

If you want to take advantage of the Obama mortgage refinancing option under the Home Affordable program, you'll be subject to an initial screening questionnaire to determine your eligibility for the Obama mortgage homeowner bailout program. The questions include:

1. Do you own a one-to-four unit home?

2. Do you have a mortgage guaranteed by Fannie Mae or Freddie Mac?

3. Are you current on your home loan payments? (Current means no more than 30 days late on any payment in the last year.)

4. Is the amount you owe on your loan about the same or less than the current value of your home?

These questions are simple for experienced borrowers who know what's expected. For those new to home loans, conventional mortgages and refinancing, you might have questions about each part of the screening. Of the four parts, Question #1 is the simplest. Under the terms of the Obama mortgage refinancing option, those who own single-family homes are eligible under the right circumstances, but so are those who own property with as many as four units-as long as you reside on the property yourself.

Question #2 is difficult for some to answer unless they place a call to their loan officer-just what are Fannie Mae and Freddie Mac? Fannie Mae and Freddie Mac are government supported enterprises. They are private agencies which are supported by the government. Their status allows a home buyer to get a home loan at a lower interest rate. Fannie Mae and Freddie Mac loans have a lower cost than other home loans. If you aren't sure whether your loan is a Fannie Mae or Freddie Mac loan, call your loan officer, who can tell you for certain.

Regarding Question #3, there is some confusion over what is considered being "current" on a home loan. Under the rules of the Obama mortgage, a Fannie/Freddie home loan or conventional loan has a specific definition of "current"--it doesn't simply mean you've made all your payments in the last 12 months. It also means your payments were not more than 30 days late--an important distinction to make. "Paid up" isn't the same as "current" under the eligibility rules.

If you were more than 30 days late on a mortgage payment or conventional loan in the last 12 months, you may be able to wait until a full 12 months have passed with on time payments before applying for an Obama mortgage. Or you might consider applying for the loan modification version of the Obama mortgage homeowner relief program instead. If you choose to wait, it's important to know the Home Affordable homeowner bailout program is scheduled to end June 10, 2010.

Question #4 refers to the Obama mortgage requirement that you owe less than the current value of your home. If your payments have gone up because you have a variable rate mortgage, you may be paying far more per month than you would with a fixed interest rate. The amount of your mortgage payments would-if that higher interest rate did not change over the lifetime of the loan--equal more than the home is worth. But Question #4 refers to the "total amount" of your remaining loan payments compared to the actual market value of the home. If the amounts are equal or the amount you owe is less than the market value, answer yes to question #4.




FHALoan is a private corporation, is not a government agency, and does not make loans.