With 4 million American homeowners on the verge of losing their homes because of high mortgage payments President Obama’s “Making Homes Affordable” loan modification plan could not come at a better time. A funding of $75 billion will allow the paying of mortgagers, borrowers and service agencies to participate in a plan to keep homeowners in their homes. Below are some prime features of the program and the minimum qualification standards of the borrowers who can participate:

• Homeowner must reside at the home.
• One to four-unit properties can apply.
• Homeowners’ residence must have a balance on the mortgage equal to or less than $729,750.
• One to four-unit properties can have a higher balance owning.
• Mortgage payment, taxes, insurance and home association fees must total more than 31% of the gross monthly wages and income of the homeowner.
• There is no delinquency requirement to apply.
• The mortgagee must not be involved in bankruptcy proceedings.

The Treasury Department is offering the plan for free and is warning homeowners of possible scams where they are asked by unscrupulous people to pay a fee to participate in a loan workout plan. To enable this program to work Obama’s loan modification plan is based on reducing the mortgage payment down to 31% of the gross monthly income of the homeowner. This is calculated by the following set of rules:

• Reducing the interest rate reduction down as low as 2%.
• Extending the mortgage up to 40 years
• Forbearance of the principal to avoid foreclosure.
• Forgiveness of the principal at the lenders discretion.
• Pay-For-Success: This allows paid incentives and other considerations to be given to both lenders and servicers to extend this program to their borrowers.

In addition there is a reward for homeowners who live up to the new modified loan plan. Up to $5000 in reduced principal credits for their mortgage will fast-track them to rebuilding their equity.

Loan Modification Questions to Ask Yourself

• Do you know how to begin the qualification process for Obama’s loan modification plan?
• Do you know how to figure out your debt ratio?
• Do you know how to find out how you can reach your target payment based on 31% of your gross monthly income?
• Do you know how to put all the aforementioned items together in order to qualify yourself before you go to your lender?

To speed up the approval process all of these points must be addressed because acceptance into the plan depends on a complete package with the all the necessary ingredients. Before the process can begin you have to know how to get everything in line so that you can be successful in lowering your loan payments and getting your life back in order in your own home.

All the help you need to understand the Making Home Affordable loan modification plan is available through ordering and downloading The Complete Loan Modification Guide. With the easy-to-understand instructions you will be on the road to qualification into the program and financial freedom. With these detailed directions you will learn:

• How to prepare the loan application like a professional.
• How to calculate debt ratio
• How to prepare detailed financial statements like an accountant.
• How to write a convincing letter that states your financial situation.
• How to present the entire package to the lender.

So begin the steps to securing the ownership of your home. Order and download The Complete Loan Modification Guide.

To continue learning about Obamas Loan Modification Program continue reading additional articles on this site.