President Obama’s Federal Loan Modification – Learn the 4 Step Formula Used by Your Lender to Qualify You By Susan V. Gregory

by Joe Thomas on September 17, 2009

President Obama’s federal loan modification plan uses a standard 4 step formula to determine which homeowners qualify for a loan workout.  You can learn this basic formula and have a lot more control over whether you are approved for this government plan.  All lenders who participate in the federal Home Affordable Plan have been mandated to use the same guidelines-so it just makes sense to learn what these steps are and use them to prepare your own application correctly.

Did you know that even if you have applied before and been turned down you are allowed to request consideration for the Home Affordable Plan again?  Obama has required all participating banks to review every application from a homeowner who requests consideration.  This is your second chance-make sure you take the time to learn exactly what your bank will be looking for in order to approve you.

Lenders using the Home Affordable Modification Program will use 4 steps to determine who qualifies.  You can follow these very same steps to pre-qualify yourself and make any necessary adjustments to your budget before your bank reviews your paperwork.

The 4 Step Formula for Home Affordable Modification Program Eligibility:

  1. Determine whether borrower’s monthly mortgage payment ratio exceeds 31% of their gross monthly income
  2. Verify borrowers total monthly debt ratio
  3. Calculate target monthly mortgage principal and interest payment amount
  4. Complete the necessary modification steps to achieve the target payment-reduce interest to as low as 2%, extend loan term to 40 years, defer or forgive some principal balance

You can learn more details about how to determine your own target payment, calculate your debt ratio and prepare your financial statement correctly by using a homeowner guide.  It is not difficult-just a simple math calculation that you can do yourself following step by step directions.  Don’t take chances with your success-take the time to learn and prepare before you apply.

You can get the help you need to apply and qualify for Obama’s loan modification by ordering and downloading the best selling handbook for homeowners, The Complete Loan Modification Guide. This is a low cost, easy to read home edition loan mod kit that will provide you with everything you need to prepare a professional and acceptable loan modification application. You are provided with all of the necessary forms and given detailed directions on how to complete them properly. The Complete Loan Modification Guide will take you step by step through calculating your debt ratio, completing the financial statements, writing your hardship letter and then putting it all together to submit to your lender. Learn how to apply and qualify for the Obama federal program too. Get started today on the path to secure home ownership, order and download The Complete Loan Modification Guide.

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