Making Home Affordable: Program’s Loan-To-Value Limit May Soon Change
The “Making Home Affordable” program introduced by the Obama administrationis may soon change to allow higher LTV (Loan-To-Value) ratios which in turn will open the program to more borrowers, particularly those with upside-down mortgages (mortgages where loan amount signifficantly exceeds the property value due to falling home prices).
The program is currently open to the borrowers who’s loan amounts are up to 105% of the property value and are owned or guaranteed by the Fannie Mae and Freddie Mac agencies, which are currently sponsored by the US government.
The Director of Federal Housing Finance Agency James Lockhart has acknowledged in a press conference that the current LTV limit of 105% is being re-considered, however he did not reveal the new LTV figure.
Media reports that LTV limit could be raised to as much as 125% which could theoretically include up …
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