The federal Making Home Affordable Program, which is part of the federal Homeowner Affordability and Stability Plan, will give many homeowners who are at risk of foreclosure or who owe more on their home than the home is worth the opportunity to refinance or modify their mortgage loans. The program is a first-of-its-kind in that it provides direct assistance to the homebuyer. As many as one in nine New Mexico homeowners could benefit from the Making Home Affordable Program.
There are two ways New Mexico homeowners can benefit from this program:
- Home Affordable Modification -- Homeowners who are in immediate danger of foreclosure may qualify for a loan modification that may reduce their monthly mortgage payments to no more than 31 percent of their gross income. If the borrower makes timely payments on the modified loan, they can receive up to $1,000 a year for five years to be applied to their mortgage loan. Of the approximately 257,000 mortgage loans in New Mexico, almost 16,500 are past due and could be eligible to benefit from this program. There is no charge to the homeowner for the loan modification. The program will be available until December 31, 2016.
- Home Affordable Refinance – Homeowners who have adjustable rate loans and a good payment history may be able to refinance their loans into a stable, fixed-rate 15- or 30-year mortgage. These homeowners may not be in immediate danger of foreclosure, but are facing a future mortgage payment they will not be able to afford. Also, credit worthy homeowners who owe more on their home than the home is worth may be able to refinance their loans to take advantage of lower interest rates – something they were not previously able to do. This program will be available to eligible homeowners until December 31, 2016.
An MFA-approved lender will be able to help you with these programs. Click here for a list of approved lenders.