In response to the impact of the economic downturn in the US, the government under the Obama refinance plan made proposals to help reduce the numbers that were fast losing their homes. Among the proposals was the Home Affordable Refinance Program (HARP) which aimed at helping home owners who were underwater to salvage their homes.

These people would typically not get refinancing from the banking sector and they therefore faced foreclosure and ultimate loss of their homes. These people were those who had no other equity options and were probably the very population that needed the one home that they lived in.

The home owners under the Obama refinance plan would in effect have their previous loans moved to a product that had monthly payments that were not more than 20% of what they were previously paying. It was envisioned that the ultimate benefit for the home owner would be in either having easier monthly repayments, or having their mortgage upgraded to a more stable mortgage product.

There are three primary qualifying characteristics of those applying for HARP loans, the first being that they should have been making prompt payment on their previous facility. Their payments should not reflect a late payment within six months of their application and should reflect a maximum of one late payment in the twelve year prior to their application.

The second qualifying characteristic for borrowers to benefit under the Obama refinance plan is they should have an LTV that is above 80% and 125% for HARP and HARP 2.0 respectively. The third qualifying characteristic is that their mortgage should be backed by either Fannie Mae or Freddie Mac.

As with all loan applications the bank or mortgage company takes the potential borrower through an evaluation process to ascertain their qualifications in much the same way as they had when the person took the mortgage the first time. Below you will find a couple of preparatory tips to help you have the information that they will ask for handy.

The first inquiry you should make is to call a bank near you to confirm that your mortgage is backed by Freddie Mac or Fannie Mae to get your first qualifying mark under the Obama refinance plan. Another efficient route to confirm the ownership of your mortgage is to visit the website of either one of the two companies. Once you have that important detail covered proceed to put your income and expenditure schedule in an easy to understand manner as this is the most critical data a lender will want to look through. Have close at hand pay slips, utility bills and other documentation on your income.

If you have any other payments that you are making such as child support or college fees, then you should tabulate all the additional payments you make per month. Finally have at hand the assets you may have such as other houses, cars, boats, and additional equity as well as other sources of income that would help support your eligibility to the Obama refinance plan. To make your inquiry faster, have the documented evidence of all your financial matters.

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