Home Affordable Modification Program For Struggling Homeowners
Homeowners facing financial difficulty can use the government's Home Affordable Modification Program, or HAMP, to modify their current mortgages 1D0-435 into more affordable terms.
With HAMP loans, homeowners can lower their total housing costs - including mortgage principal and interest, home insurance, real estate taxes, and homeowner association fees -- down to 31 percent of their gross monthly income.
The HAMP is a government program built to help homeowners struggling to meet their mortgage payments by modifying, or changing, their mortgage terms. Unlike a refinance that replaces their home loan with a new mortgage, a HAMP mortgage keeps their current mortgage and modifies the payment terms.
If you qualify for a HAMP loan, your lender can lower your mortgage interest rate to 4.5 percent or even as low as 2 percent in 1D0-430order to reduce your mortgage payment to the 31 percent ratio. The lender can also extend to mortgage term to up to 40 years and even reduce your principal. As a bonus, the Home Affordable Modification program may pay up to $5,000 to pay down your mortgage if you pay the HAMP loan on time.
Here are certain requirements to qualify for HAMP loan program:
* Your mortgaged property must be your primary residence. Investment properties and vacation homes are not eligible.
* Your 1D0-442 current mortgage must be under $729,750 for a single-family home. Higher amounts apply for two, three and four unit properties.
* Your current mortgage must have been made before Jan. 1 2009.
* You must not have any 30-day late mortgage payments within the last 30 days.
* Properties in foreclosure are eligible for HAMP loans.
With HAMP loans, homeowners can lower their total housing costs - including mortgage principal and interest, home insurance, real estate taxes, and homeowner association fees -- down to 31 percent of their gross monthly income.
The HAMP is a government program built to help homeowners struggling to meet their mortgage payments by modifying, or changing, their mortgage terms. Unlike a refinance that replaces their home loan with a new mortgage, a HAMP mortgage keeps their current mortgage and modifies the payment terms.
If you qualify for a HAMP loan, your lender can lower your mortgage interest rate to 4.5 percent or even as low as 2 percent in 1D0-430order to reduce your mortgage payment to the 31 percent ratio. The lender can also extend to mortgage term to up to 40 years and even reduce your principal. As a bonus, the Home Affordable Modification program may pay up to $5,000 to pay down your mortgage if you pay the HAMP loan on time.
Here are certain requirements to qualify for HAMP loan program:
* Your mortgaged property must be your primary residence. Investment properties and vacation homes are not eligible.
* Your 1D0-442 current mortgage must be under $729,750 for a single-family home. Higher amounts apply for two, three and four unit properties.
* Your current mortgage must have been made before Jan. 1 2009.
* You must not have any 30-day late mortgage payments within the last 30 days.
* Properties in foreclosure are eligible for HAMP loans.
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