President Obama has signed the Home Affordable Plan as part of the 2009 Stimulus Bill. You have probably heard discussion on the news concerning the Stimulus funding, but you might not really understand what is available. Exactly who benefits from this program?
This program was initially directed at jump starting the housing market which has been in a poor condition, reflecting the economic problems plaguing the United States. Housing sales have slumped dramatically, market value of property has plummeted, and foreclosures are at an all-time high. But, the program is also targeted at providing assistance to homeowners and prospective homeowners of various segments of the United States population.
The Home Affordable Plan is divided up into three programs: First Time Buyer Stimulus, Refinance Plan, and Loan Modification. Each one has its own intended target group, requirements, and deadlines.
The First Time Buyer Stimulus is for people who have not owned a home in three years. It is in the form of a refundable tax credit of 10% of the purchase price of the home or $8,000. The home has to be closed on between January 1, 2009, and December 31, 2009. Your income can't be more than $75,000 for a single person or $150,00 for a couple to qualify. There is no application process, but you need to be sure you meet all the requirements before taking the tax credit on your income taxes.
The Refinance Plan provides a chance for people who have lost equity due to falling market values to still refinance their home. Normally 20% is required, but with this program, qualified homeowners can owe up to 105% of the market value of their home. This program expires June 10, 2010.
The Loan Modification Plan is the most-talked about part of the program. Through this program, qualified homeowners can avoid foreclosure by getting a totally rewritten loan. Their interest rate may be lowered, their loan term lengthened, and their late fees forgiven. Sometimes principal is even reduced if need be to get the house payment that is targeted, 31% of the gross monthly income. This program is for victims of financial hardship. It is available until December 31, 2009.
All of these programs in ther Home Affordable Plan have other criteria you need to examine.
This program was initially directed at jump starting the housing market which has been in a poor condition, reflecting the economic problems plaguing the United States. Housing sales have slumped dramatically, market value of property has plummeted, and foreclosures are at an all-time high. But, the program is also targeted at providing assistance to homeowners and prospective homeowners of various segments of the United States population.
The Home Affordable Plan is divided up into three programs: First Time Buyer Stimulus, Refinance Plan, and Loan Modification. Each one has its own intended target group, requirements, and deadlines.
The First Time Buyer Stimulus is for people who have not owned a home in three years. It is in the form of a refundable tax credit of 10% of the purchase price of the home or $8,000. The home has to be closed on between January 1, 2009, and December 31, 2009. Your income can't be more than $75,000 for a single person or $150,00 for a couple to qualify. There is no application process, but you need to be sure you meet all the requirements before taking the tax credit on your income taxes.
The Refinance Plan provides a chance for people who have lost equity due to falling market values to still refinance their home. Normally 20% is required, but with this program, qualified homeowners can owe up to 105% of the market value of their home. This program expires June 10, 2010.
The Loan Modification Plan is the most-talked about part of the program. Through this program, qualified homeowners can avoid foreclosure by getting a totally rewritten loan. Their interest rate may be lowered, their loan term lengthened, and their late fees forgiven. Sometimes principal is even reduced if need be to get the house payment that is targeted, 31% of the gross monthly income. This program is for victims of financial hardship. It is available until December 31, 2009.
All of these programs in ther Home Affordable Plan have other criteria you need to examine.
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