More borrowers who were hit hard by falling home prices will now be able to take part in the fed’s mortgage refinancing program. The Obama administration is broadening the Making Home Affordable program to include loans up to 125 percent of the home’s value.

Prior to the new plan announced in February, the limit for a borrower’s loan eligibility to refinance was 105 percent of the home’s value. The change comes on the heels of home prices falling so far in so many areas that many borrowers were not qualified for the program.

Another change to the program is that homes worth as much as $200,000 with mortgages up to $250,000 can now qualify. Previously, only loans up to $210,000 will be considered.

Housing Secretary Donovan announced the program expansion last month in Las Vegas. Las Vegas was an appropriate location – the city hardest hit by foreclosures and where around 67 percent of homeowners owe more than the homes are worth … so far, that is. With home prices still falling, it could mean greater numbers in the near future.

The administration projects that 4 to 5 million borrowers could be helped with the new program. A Treasury official stated that the numbers applied to those who are eligible, not necessarily to those who will end up participating in the program.

If you have a Freddie Mac loan, meet the eligibility requirements and want to refinance through your current lender, you can apply immediately. If you want to use a different lender, you’ll have to wait until October 1st.

Fannie Mae borrowers cannot use a different lender and will have to wait until September 1st to refinance only if the mortgage is more than 105 percent of the home’s value.

For borrowers who used other lenders and are either in default, or at-risk of default, the program also those who are eligible to lower their monthly payments not to exceed 31 percent of their pre-tax income. This could substantially assist Las Vegas homeowners who are upside down on their homes.

For more information about the program, and to see if you qualify, check out the Making Home Affordable website, the Fannie Mae website or the Freddie Mac website.