Q&A for Borrowers about the Homeowner Affordability and Stability Plan

Borrowers Who Are Current on Their Mortgage Are Asking:

1. What help is available for borrowers who stay current on their mortgage payment but have seen their homes decrease in value?
   
   Under the Homeowner Affordability and Stability Plan, eligible borrowers who stay current on their mortgages but have been unable to refinance to lower their interest rates because their homes have decreased in value, may now have the opportunity to refinance into a 30 or 15 year, fixed rate loan.  Through the program, Fannie Mae and Freddie Mac will allow the refinancing of mortgage loans that they hold in their portfolios or that they placed in mortgage backed securities.
    
2. I owe more than my property is worth, do I still qualify to refinance under the Homeowner Affordability and Stability Plan?
   
   Eligible loans will now include those where the new first mortgage (including any refinancing costs) will not exceed 105% of the current market value of the property.  For example, if your property is worth $200,000 but you own $210,000 or less you may qualify.  The current value of your property will be determined after you apply to refinance.
   
   To read more Q&A, click here.

Current and Upcoming Developments
Homeownership has long been a major part of the American Dream. In Southern California the high price of real estate has put that dream out of the reach of many Long Beach residents. The LBHDC mission is to make homeownership more than just a dream but a reality for as many citizens as humanly possible.
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Home Ownership Education
The road to homeownership is much smoother when you’re an informed and educated buyer. The LBHDC realizes the home buying process can be complicated and confusing especially if it’s your first time. So we’re here to help take the mystery out of the process with fun and easy-to-understand home-buying seminars.

Home Buying Programs
The Long Beach Housing Development Company offers a Second Mortgage Assistance Program for qualified first-time homebuyers.

Neighborhood Stabilization Program (NSP)
The U.S. Department of Housing and Urban Development's Neighborhood Stabilization Program (NSP) provides grants to every state and certain local communities to purchase foreclosed or abandoned homes at a discount and to rehabilitate, resell, or redevelop these homes in order to stabilize neighborhoods and stem the decline of house values of neighboring homes. 
For more information, click here.