Making Home Affordable Program – the Obama Housing Plan

On February 18, 2009, President Obama announced his Making Home Affordable Program, designed to help up to 7-9 million families avoid foreclosure by restructuring or refinancing their mortgages. This plan is designed to not only help responsible homeowners behind on their payments or at risk of defaulting, but prevents neighborhoods and communities from being dragged over the edge too, as defaults and foreclosures contribute to falling home values, failing local businesses, and lost jobs.

More detailed information can be found at

Guidelines to the Making Home Affordable Program

The Obama Administration announced the new U.S. Department of the Treasury guidelines. These guidelines enable servicers to begin modifications of eligible mortgages under the Administration’s Making Home Affordable Program – announced by President Obama on February 28, 2009.

Here are the key elements of the Obama plan summarized by the National Association of Realtors:

1.  The Home Affordable Refinance Program.  Under this program, eligible borrowers may refinance loans that Fannie Mae or Freddie Mac (the government sponsored enterprises, or GSEs) own or guarantee.  The program can help homeowner-occupants who are current in making loan payments and have loan-to-value ratios (LTVs) above 80 percent but not more than 105 percent.  Cash out refinancings are not permitted.  The program ends in June 2010.

2.  The Home Affordable Modification Program.  This is a $75 billion program with lender, servicer, investor, and borrower incentives to make it work.  The program is limited to homeowner-occupants who are at risk of default or already in default and who have loans at or below the maximum GSE conforming loan limit of $729,750 (or higher for 2-, 3-, and 4-unit properties).  Loan modifications under the program may be made until December 31, 2012.

3.  More Support for the GSEs.  President Obama also announced more support for the GSEs, including doubling of potential Treasury investment from $100 billion to $200 billion for each GSE, to maintain their positive net worth.  The plan also raises the cap on mortgages that the GSEs may hold in their portfolios by $50 billion to $900 billion.

If you are behind on your mortgage or know a friend that is behind on their mortgage please direct them to This is an excellent resource to determine if you are eligible for a Loan Modification. 

If you do not qualify for a mortgage modification and need to sell your property. Please give us a call. We can help!

Leave a Reply