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Maryland Foreclosure and Mortgage Assistance
Lifeline Refinance Mortgage Program
Maryland offers this mortgage assistance program that provides Maryland families with a very compelling way to receive a competitive mortgage refinancing. It helps those who have an adjustable rate mortgage, interest only loan, sub prime mortgage, or other unfavorable mortgages that no longer may fit the homeowners person situation.
You need to have a minimum credit score needed of 600 to be eligible for the Maryland Lifeline Program, however exceptions can be made in unusual circumstances. Also, the mortgage you want to refinance can’t be delinquent and it must be current.
Also, there are other criteria that need to be met to be eligible for mortgage refinancing assistance, and at least one of the following criteria must also be met to be able to receive mortgage help from refinancing.
- Homeowners housing expense to income ratio needs to be greater than 35% of current household income, or
- The lifetime capped interest rate on the mortgage needs to exceed the new interest rate being offered by CDA by more that 2%, or
- The overall ratio of the borrower’s housing expense to income ratio which needs to be based upon the current mortgage expense or the next anticipated interest rate adjustment needs to be greater than 31% of the borrowers current household income, or
- The mortgage borrower needs to have experienced an involuntary reduction of their total household income of at least 5% or they must have experienced the increase in expenses related to the death of the loan borrower or co-borrower, must have experienced a serious illness, injury, or permanent disability, and
- The home being refinanced in Maryland must be the borrower’s main residence.
Homesaver Refinance Mortgage Program (Lifeline)
This mortgage and foreclosure assistance program will help delinquent borrowers. Mortgage refinancing help is offered by this assistance program as well. To be qualified for the Maryland Homesaver Program, the home mortgage being refinanced needs to be delinquent, however it can’t be more than 60 days delinquent. In addition, the homeowner needs to have a minimum credit score of about 550. Some other conditions include the mortgage holder must be having difficulties as a result of a potential mortgage default or foreclosure, the mortgage amount must be more than the current value of their home, or the homeowner needs to have a low credit score.
In addition, at least one more of the following conditions must be present to receive mortgage help from this Maryland plan.
- The lifetime capped interest rate of the mortgage needs to exceed the interest rate that is offered by Maryland by more that 2%
- The homeowners housing expense to income ratio that is based on their current mortgage payment needs to be more than 31% of their current income
- In addition, a reduction of the homeowners total income of at least 5% may have occurred very recently, or they must have had an equivalent increase in expenses that result from such items as the death of the borrower or co-borrower, serious injury or illness, or they need to be facing permanent disability.
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