Ascent Network

What is an Obama Loan and How Do I Qualify?

You may have caught a little snippet of the most recent news to hit the financial world- the loan referred to as the Obama loan. If you have questions about what this loan is and if it is right for you, then you are reading the right blog. We have the answers for you! 

The Obama loan is a refinance program under the Home Affordability Refinance Act. This allows people who are financially struggling to refinance their home under the following conditions:

• They have good credit
• They have made their payments on time
• They are upside down on their mortgage or in an adjustable
   interest rate or their interest rates are too high

The point of the program is not to rely on government assistance, yet instead to benefit from having a home with a lower interest rate. Lower interest rates mean lower payments, and it can be just the thing for many individuals to get back on their feet again.

However, the most common misconception about the Obama loan, also known as HARP 2.0, is that individuals can qualify for this loan, when they are behind on payments. Unfortunately that is not the case. Good credit and a good standing with the mortgage company is required. So what is an individual to do when they are behind on their mortgage and don’t have the best credit?

This is where Ascent Network comes in. We are here for those who have fallen behind financially but still have a fighting spirit in them. We utilize another government program called HAMP, known as the Home Affordability Modification Program. This program has been in place since 2009 and was started under the Obama administration.
 
Ascent Network is a non-profit organization that can help individuals utilize HAMP to turn their lives around for the better. Visit our Web-SIte http://www.theascentnetwork.org or give us a call (949) 491-0777