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.