The U.S. Treasury released new eligibility guidelines for homeowners seeking federal aid that will allow troubled borrowers to lower their mortgage rate to as low as 2 percent.
The rules released today require applicants to fully document their income with pay stubs and tax returns, and sign an affidavit attesting to “financial hardship,” the Treasury said. People living in their homes who have an unpaid principal balance of as much as $729,750 can participate.
“This plan will help make home ownership more affordable for 9 million American families and in doing so, help to stop the damaging impact that declining home prices have on all Americans,” Treasury Secretary Timothy Geithner said in a statement released in Washington.
Borrowers with loans originated before Jan. 1, 2009, are eligible to modify their loans through 2012.