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Homeownership Assistance
Below is a list of some of the many different homeownership assistance resources and provisions provided by the government to address the housing crisis.
It is my hope that you will find the information below resourceful during these currently difficult economic times.
Homeownership Counseling
The Michigan State Housing Development Authority provides homeownership counseling through its Michigan Homeownership Counseling Network. To learn more about the certified Network Counseling services available in your area, please visit here.
Homeowner Affordability and Stability Plan
On March 4, 2009 the Obama Administration released details on their “Homeowner Affordability and Stability Plan” designed to address the nation’s home ownership issues.
The plan includes two initiatives:
1) The Home Affordable Refinance Program - A refinancing program aimed at homeowners with less than 20 percent equity in their home or owe more than their home is worth with mortgages owned or financed by Fannie Mae and Freddie Mac
2) The Home Affordable Modification Program - A loan modification program aimed at all borrowers at risk of losing their home that attempts to decrease their monthly payments to affordable levels.
For more information on the initiatives please visit here or visit MakingHomeAffordable.gov.
American Recovery and Reinvestment Act (ARRA)
Signed into law by President Obama on February 17, 2009, ARRA is aimed to address two groups of homeowners: those who are current on payments but pay high interest rates and have not built enough equity to qualify for refinancing, and those who are at risk of losing their homes.
Homeownership assistance provisions in ARRA include:
o Federal Housing Administration (FHA) Loan Limits – FHA loan amount limits will be increased to $729,750 for homes in high-cost areas. Areas with higher-valued homes will qualify for a FHA loans, that include low rates and easier qualification standards. It also provides the option, if warranted, to increase loan limits for any “sub-area,” i.e. an area smaller than a county. The limits will expire on December 31, 2009.
o First-Time Home Ownership Tax Credit – A refundable tax credit of up to $8,000 will be available for buyers who purchase a home in 2009 -- before December 1, 2009 -- and who have not owned a principal residence in the previous three years. The tax credit amount is based upon 10 percent of the home’s purchase price, up to $8,000. To qualify, homeowners must own their home for at least three years.
o Reverse Mortgages – Loan limits on Home Equity Conversion Mortgage – or “reverse mortgage” loans will increase to $625,500 until the end of 2009. Current limits, which mirror conforming loan limits, will be increased to open reverse mortgage options for many seniors who may want to rely upon home equity as a stable source of income.
ARRA also includes $13.61 billion for projects and programs administered by the Department of Housing and Urban Development, nearly 75 percent of which was allocated to state and local recipients on February 25, 2009. For more information on the programs, please visit here
Federal Housing Finance Agency’s Foreclosure Relief Program
On November 11, 2008 the Federal Housing Finance Agency announced a new program that targets the highest-risk borrowers who miss three payments or more, own and occupy the property as a primary residence and have not filed for bankruptcy. For consideration for the program, delinquent borrowers should contact their mortgage service provider and provide the requested income information. The program creates a fast-track method of helping troubled borrowers to an obtain affordable monthly payment in which “affordable” is defined as a first mortgage payment, including homeowner association dues, of no more than 38 percent of the household’s monthly gross income.
To learn more about the program please click here
HOPE for Homeowners
On October 1, 2008 the Bush Administration unveiled the HOPE for Homeowners program to refinance mortgages for borrowers with difficulty making their payments, but can afford a new loan insured by HUD’s Federal Housing Administration.
The HOPE for Homeowners ends on September 30, 2011 and is available to only owner occupants and will offer 40-year fixed rate mortgages – so the borrower’s last payment will be the same as the first payment.
For more information this program, please visit here or call 1 (800) 225-5342.
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