The Home Stimulus Package - What's in it For You?

The 2009 Home Stimulus Package contains 75 billion dollars worth of funding to revive the gasping housing market in the United States. Millions of people will take advantage of this assistance; will you benefit?
First, let's look at what this program entails:
· A totally reworked mortgage.
· Avoiding foreclosure.
· Lower monthly payments, less than 31% of your gross monthly income.
· Reduced interest rate, possibly as low as 2 % for five years.
· $1,000 incentives for each year you are current with your payment, up to $5,000.
· Lengthened loan terms, if necessary.
· Possible waiver of late fees
· Possible reduction of principle.

This program is available only through approved lenders on a primary dwelling. The loan must be serviced or owned by Fannie Mae or Freddie Mac, written on or before January 1, 2009, and be for an amount no more than $729,750.

The homeowner must have been struggling with a house payment, taxes, insurance and association dues included, that is more than 31% of their gross monthly income. They are able to document that they have experienced financial hardship, which is reduction of income or increased expenses not of their own making. This could be the result of job loss, death of a spouse, medical bills, military service, or even divorce. You must be able to document these events with the appropriate paperwork.

You also must be able to present a financial budget statement that presents the ability to make the modified payment with ease. The lender will also be looking for a demonstration of your commitment to making the mortgage payments in a dependable and timely fashion.
The Home Stimulus Package could help you save your home if you qualify to apply. It is most important that you do your homework and prepare well before you contact your lender.
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by Scott A. Kennedy