Real Estate Market

One feature of the Homeowner Affordability and Stability Plan, announced by the Obama Administration in early 2009, was designed to help qualified homeowners who have conforming mortgages refinance to lower-rate loans. (Conforming mortgages are those owned or backed by Fannie Mae or Freddie Mac.)

The initiative was first conceived to address the problem of falling home values, which left many homeowners with loans in good standing unable to refinance because they lacked the 20% equity required for a new conforming loan. As first announced, the initiative waived the 20% requirement -- a loan-to-value (LTV) limit of 80% -- allowing (LTV) up to 105%. The recent change, however, increases that LTV limit to 125%, so more homeowners can take advantage of the program.

Homeowners must meet other criteria to use the program, such as being in good standing on their current loan and having sufficient income to afford the new payment on the refinanced loan. The program allows refinancing of qualified principal residences, second homes and small rental properties.

To find out more or whether you qualify, go online to www.MakingHomeAffordable.gov or contact your current mortgage lender/servicer.

Through the U.S. Department of Energy's Weatherization Assistance Program (WAP), low-income homeowners stand to benefit from the addition of energy-saving improvements to their homes.

If you qualify, energy audits are conducted on your home. Based on the energy audit and your home's energy use, a plan is created that details which types of energy-saving methods would be best for your home. (Improvements include such items as increased insulation, weather-stripping, new windows and doors, etc.)

The average value of WAP weatherization services provided is $2,500 per home. Under this program, an average family's projected savings are estimated to be about $350 per year in heating and cooling costs. The reduction in utility bills for these families is a long-term savings because the upgrades made to the home are permanent.

The WAP will be distributing about $5 billion to all 50 states to support the program, and more than 1 million homeowners are expected to benefit nationwide. Services are provided by each state, and each state has slightly different criteria to qualify. One of the primary eligibility factors is income. To see if your family qualifies and how to apply, visit http://apps1.eere.energy.gov/weatherization/.

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