How to Figure Out If You Qualify for the Percentage of Help for Howeowners
The U.S. government's Hope for Homeowners program provides assistance for troubled borrowers. Homeowners can refinance into a fully amortizing 30-year fixed-rate mortgage with a payment that's less than 31 percent of gross monthly income. The home must be the primary residence, the current payment must be higher than 31 percent of gross income and the homeowner must not also own a second property. He also can't have been convicted of fraud.
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Instructions
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Determining Eligibility
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1
Review your mortgage document. The loan must have originated prior to January 1, 2008.
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2
If you're in default, document why. On-purpose defaults are not eligible.
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3
Verify and document income details using statements.
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4
Homeowners who have been convicted of fraud are not eligible. Nor are those who are invested in multiple home loans.
Calculating Your Payment
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5
Using your monthly income statements, add together your pretax (gross) income. For example, if you earn $60,000 per year, your pretax income is $5,000 per month.
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6
Multiply your gross income by 31 percent. For example, if you earn $5,000 gross monthly income, this total is $1,550.
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7
Review your mortgage statement to determine if you pay into escrow for taxes and insurance. If you don't, calculate this by adding the annual totals for both together and dividing by 12. Your monthly housing payment is the total of your principal, interest, taxes, and insurance added together (called PITI).
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Compare your PITI payment to the result from Step 2. If your current housing payment exceeds this number, you are eligible for help from Hope for Homeowners. If it is less than or equal to it, you are not.
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Tips & Warnings
Double-check your math and make sure your calculations are verifiable by documentation.
References
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