Who May Qualify for Federal Modification Loan Programs?
If you struggle each month to come up with the money to make your mortgage loan payment, you can seek a home loan modification from your lender. The federal government in 2009 launched its Home Affordable Modification Program to encourage lenders to lower the monthly mortgage payments of homeowners, who were in danger of falling behind on their payments and losing their residences to foreclosure. To earn one of these modifications, though, you'll have to meet certain requirements.
Other People Are Reading
-
Your Residence
-
To qualify for a lower monthly mortgage payment, you must be seeking a modification for a home that serves as your primary residence. If you are having difficulty paying your mortgage bills on a second home or a vacation residence, you will not qualify for a modification for such a residence through the Home Affordable Modification Program.
Your Mortgage Loan
-
You can qualify for a modification through the federal program as long as you owe $729,750 or less on your mortgage loan. If you owe more than that, though, your lender will not be allowed to modify your home loan through the federal program.
-
Your Timing
-
The Home Affordable Modification Program is only open to homeowners who took out their mortgage loans on or before Jan. 1, 2009. If you took out your loan after this date, you can still petition your lender for a mortgage modification. Your lender will have to agree, though, to modify your loan without the financial incentives that the government is providing lenders who modify home loans through its program.
Your Financial Situation
-
The government has also imposed financial restrictions that regulate if you can or can't qualify for a loan modification through its program. You can only qualify for a modification if your monthly loan payment---including interest, taxes, insurance and homeowner's association dues---totals more than 31 percent of your gross monthly income. You must also be struggling to make your mortgage payment each month. The program is not open to homeowners who think they are paying too much for their mortgage loans but have the financial resources to easily make their payment each month.
-
