Government mortgage help has come to the rescue of homeowners. The recession led to a lot of bills being passed which has prevented homeowners from getting their homes foreclosed. The Homeowner and Stability Plan announced in February 2009 include this government program.

Eligibility

People are increasingly finding it difficult to make ends meet. It is very difficult to fulfill household needs leave alone making house payments. Yet, with President Obama's government loans mortgage help program, the dream of owning a home seems to be coming true. Now, homeowners can restructure their loans.

The government help with mortgage payments plan will help the homeowners in two ways. The program has two aspects which are closely linked; the Home Affordable Refinance and the Home Affordable Modification. The former will help them avoid foreclosures and the latter helps the current homeowners refinance their mortgages. Now, they would be able to make less monthly payments at fixed-rate loans.

However, both the programs have some eligibility criteria. The Home Affordable Refinance has the following criteria:

• Home Affordable Refinance

This program can help the borrowers refinance their home into a 15 or 30 year fixed rate loan. The plan will also assist the homeowner in refinancing if the money owed on the mortgage is little more than what the home is worth.

The new payment rates under the government foreclosure help program will be based on the current market mortgage rate at the time of refinancing.

Moreover, the new rates will be based on a borrower's linked points and fees with the lender. However, once a homeowner has been approved for this program, he cannot take cash out of the equity in his home to pay other bills. Only transaction costs would be allowed to be involved in the refinanced account.

• Home Affordable Modification

Only those homeowners with a conforming loan securitized or having possession of by Freddie Mac or Fannie Mae are eligible. Moreover, the government help with mortgage is only provided if the first mortgage on the home does not exceed 105% of the current market value of the property.

Homeowners must be residing in the home that is to be refinanced and it must be their primary address. Also, the house must be a one to four unit property and the borrowers must have enough income to make payments on the new loan terms.

Beware

The homeowners should stay on guard regarding scams associated with government help with mortgages. There are many fake organizations who may ask for money in exchange for counseling service or changes in the delinquent loan. It should be noted that assistance from a Department of Housing and Urban Development (HUD)-approved housing counselor is absolutely free of cost.

Beware of people who by saying that they provide mortgage government help, make you sign papers immediately. These fake agencies may also convince a distressed homeowner into believing that they can save his home by signing or transferring the deed to the property or any organization. No such deals should ever be signed nor should mortgage payments be made to anyone other than the mortgage company.

Government mortgage help is being offered to people who are eligible. Call the toll free number to speak with a HUD-approved counselor for free.