When did congress reduce the criteria to obtain a federally guaranteed mortgage?

Posted on Mar 4, 2013 in Stated Income Loans

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Question by irobot: Refinancing under water mortgage?
I am like millions of homeowners who are under water on their mortgage. I have been trying to get refinanced to take advantage of the lower rates. My current Loan/Value ratio is 107%, site which I am willing to pay down to 105%. I have been current on all my mortgage payments & have excellent credit history/scores. Based on this, see I was confident to get refinancing. But I got rejected because my original loan had mortgage insurance.

A friend told me about this program called HARP (makinghomeaffordable.gov). I checked the eligibility criteria and it tells me that I do qualify to get refinancing – 1) My loan is owned by Freddie; 2) My house is our primary residence; 3) I am current on the payments; 4) 1st mortgage is below 125% of home value; 5) I have sufficient income & excellent credit.

I would be grateful if you could share your experiences / advice please. Is there a real clause in the rules regarding mortgage insurance on 1st mortgage?

Best answer:

Answer by linkus86
I can’t share an experience but you may want to hold off on the plan as Obama is actively trying to allow underwater borrowers like yourself to refinance with a government insured loan and being able to forgive 10% of the loan.

Know better? Leave your own answer in the comments!

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Question by chck: When did congress reduce the criteria to obtain a federally guaranteed mortgage?
For example: Home loan borrowers may not be required to show their ability to repay the loan, cost their credit history may be poor and they may not have to prove they have sufficient income to repay the mortgage loan.

Best answer:

Answer by Anjell
Who said they reduced it? If anything they’ve increased the requirement, price in particular credit and income requirements.

What do you think? Answer below!

5avg.rating 10 votes.


  1. loan criteria is constantly in flux. From day to day everything changes. Right now it is actually tighter than it was a few weeks ago. Two years ago it was about how you are describing it.

    Two years from now it will be very different in some other way.

  2. It was back in the late 90’s. It was a Democratic plan to get the “poor and underprivileged” into home ownership.

    It may have worked too, except the “poor” decided that a home was not enough, they must live in a mini-mansion.

    Couple this with the middle class objecting to the lower class moving in next door and they too bought homes they could not afford in an effort to keep their children away from the drugs and gang bangers that suddenly invaded the middle class neighborhoods.