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New Federal Program for Homeowners

A new government program is offering some borrowers relief from problems created by recent fluctuations in local real estate markets and the deterioration of the economy.The newly developed Homeowner Affordability and Stability Plan is part of President Obama’s strategy to get the economy back on track. The program is designed to help responsible homeowners adjust their mortgage so they can continue to make mortgage payments and gain peace of mind. Lawmakers also hope to stop neighborhoods and communities from being deeply impacted by reduced property values and other financial impacts.

Plan for Refinancing Relief for Customers With On-Time Payments

Homeowners who have a consistent history of paying their existing mortgages on time may be able to take advantage of the Home Affordable Refinance program if their Wells Fargo (or other lender) mortgage is owned by Fannie Mae or Freddie Mac. These homeowners may not have been able to refinance previously due to lost home value, but this program will allow millions to take advantage of today’s historically low interest rates. To find out if your loan is owned by Fannie Mae or Freddie Mac, visit www.wellsfargo.com/mortgage/account/stabilityplan and select the Fannie Mae or Freddie Mac links toward the bottom of the page.

Who is Eligible for a Home Affordable Refinance?

Homeowners who have suffered a loss in property values but who have consistently made their mortgage payments on time and can benefit from a reduced rate or payment.

Home Loan Refinance-Program Requirements

  • You are current on your mortgage.
  • The property is a single-family dwelling or a 2-4 unit attached dwelling.
  • This is your primary residence, second home or an investment property.
  • You have income to support the new monthly payments.
  • You can obtain a lower interest rate, a lower monthly payment or a more stable loan product (for example, switching from an adjustable-rate to a fixed-rate) by refinancing.
  • Your new loan amount does not exceed 105% of the value of the home (excluding second trusts).
  • Available July 1st - new loan amounts to $729,750
  • Your loan is owned by Fannie Mae or Freddie Mac.

Paul Crowley is a home mortgage consultant with Wells Fargo. Paul is also a client of FJY and serves on our Client Advisory Board. He can be reached at 703-502-7665.