There is no doubt that Congress is trying to help the housing problem, which is believed imperative to get the economy going again. In addition to the first-time homebuyer credit, there are two programs now in place to help homeowners suffering from falling home prices.

The Home Affordable Refinance plan provides access to low-cost refinancing, and the Home Affordable Modification plan helps those in danger of losing their home to foreclosure.

Home Affordable Refinance plan

With mortgage rates at historic lows, many homeowners with mortgages owned by Fannie Mae or Freddie Mac were unable to refinance because of falling home prices. Currently, Fannie and Freddie cannot guarantee a mortgage that exceeds 80 percent of a home's value. This plan removes this restriction, allowing many to refinance at lower rates and helping them stay in their homes. This opportunity ends June 1, 2010.

You may qualify for this program if:

- the property is owner-occupied and you are current with your mortgage payments,

- your existing mortgage is with Fannie or Freddie,

- the new mortgage balance will not exceed 105 percent of the home's current value,

- the mortgage balance is $729,750 or less for a single-family home.

Home Affordable Modification plan

This plan is intended to help homeowners struggling to make their monthly mortgage payments and who cannot sell their home because prices have fallen below the amount owed on the property. Loan modifications will reduce the mortgage payments by dropping the interest rate to as low as 2 percent, extending the loan term to up to 40 years and/or forbearing principal. '

Principal forbearance is not debt forgiveness. The forbearance amount will be due as a balloon payment when the loan matures, when the property sells or when the interest balance has been paid off.

You may qualify for this program if:

- you are the owner-occupant and your mortgage was created before January 1, 2009,

- you are in financial hardship,

- your current mortgage payment (principal, interest, taxes and insurance) exceeds 31 percent of your monthly gross income,

- your mortgage balance is $729,750 or less.

Counseling programs may be required to take advantage of this program if you have total debt (housing, car and credit card) payments that exceed 55 percent of your monthly gross income.'

Lenders are required to reduce your mortgage payment to no more than 38 percent of your monthly gross income and these modified payments stay in place for five years, after which time the lender can increase your interest rate by 1 percent per year up to the 30 year fixed conforming loan rate at the time of modification.' The U.S. Treasury will then share the costs of reducing your payments further to a debt-to-income ratio of 31 percent.'

Both lenders and borrowers are incentivized to use this program. Lenders can receive upfront fees of $1,000 and an additional $1,000 per year for three years if the borrower stays current. The borrower can receive a $1,000 per year reduction in principal balance for five years for making timely payments. Additional incentives are available to facilitate short sales or deeds in lieu of foreclosures for borrowers who default under modified loans.

The good news for all mortgage holders is that rates are at historic lows and you can refinance to reduce your payments and the total interest that will be due over the life of your loan.' If you are in the market for a new home or second home, prices are down substantially and you can now buy something for much less than a couple years ago. Look for the opportunities that are produced during times like these.