Obama’s Housing Plan can seem overwhelming to those who give it just a cursory glance. Here is a very brief and concise overview of some of the more important details that may or may not directly affect you and your daily finances.

People who are eligible for the Obama Housing Plan are those who have a large enough income to pay modified loans. Those who are finding themselves without a job in this difficult economic time are unable to find relief in this housing plan. Another qualification necessary in order to be eligible for the housing plan is having a total net debt that is under 55% of your total income. If your debt is higher than this you will need to meet with a debt counselor in order to be approved.

You do not need to be behind on your payments in order to qualify for the plan. As long as you are able to prove that your income is no longer enough to meet your housing payments, whether because of a smaller paycheck or a mortgage rise, you are eligible.

In order to be eligible you also need to illustrate that your loan does not exceed the “Fannie Mae” or “Freddie Mac” loan limits. This limit varies from 417,000 to 729,750 depending on which part of the country in which you live. You will also need to be able to beyond a doubt prove that you are the subject of economic hardships.

There are many nuances to the new Obama Housing Plan. In order to fully understand it and the implications it has for you and your finances, it is important to talk to a counselor.