Obama’s mortgage relief and housing plan

By Edward Harrison On Mar 4, 2009

The details on Obama’s new mortgage relief plan are out. The key parts are the following:

Mortgage must be a conventional, conforming loan (i.e. up to the new $729,00 level – No jumbos)
Homes must be owner-occupied (no vacant or invesment homes qualify)
No minimum or maximum LTV (does that mean 110% loans qualify? I do not know yet, but you can be in negative equity)
Will bring debt to income ratio down to 38% by the lender
The governemnt will kick in the rest to get homeowners down to 31%.
Borrowers in bakruptcy are not automatically rejected
If you default, you do not re-qualify.

See the video below for further details.

Edward Harrison 7783 posts 575 comments

Edward Harrison is a senior Editor at Bloomberg. He is also the founder of Credit Writedowns newsletter, a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.

Links: 2009-03-04

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2 Comments

Daniel says 16 years ago

Hope this will bring the crisis down and according to me this is very good idea by Mr.Obama.
home
mortgage

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