President Obama announced Wednesday a mortgage relief plan geared toward homeowners in need of refinancing their homes that are currently “underwater” due to the current housing market.
The President’s relief plan is aimed to help roughly 13 million homeowners that either have mortgages backed my Fannie Mae and Freddie Mac or by other private financial institutions. These homeowners have a credit score above 580 are current on their payments.
In order to qualify a loan must also meet the Federal Housing Agency's, or FHA's, guidelines and be within the values of $270,000 and $730,000.
Obama’s suggested program will be funded through fees billed to large banks based on the loan size and level of risk. Estimated costs range from $5 billion to $10 billion. The final cost will ultimately be based on the number of participants.