Get HAMP to Make the Home Mortgage Affordable

You need to make yourself known to home affordable mortgage modification program if you are one of those home owners struggling for making home affordable. Government making homes affordable programs was a initiative to stop alarmingly rising rate of default and foreclosure in the country. Low purchasing power has left many in a difficult situation and most of the home owners are unable to pay for usual costs left alone mortgage costs.

HAMP program allows modification to the mortgage plan so that it becomes affordable and within home owner’s financial capability. You can cut down your mortgage expenses to as low as 31% of net income with the help of modification plan.

Some basic guidelines provided by USLoanz.com Mortgage Refinance Company for struggling homeowner to qualify for home affordable modification program.

  • The modification plan can be applied to primary residence. Which means the home owner shall reside in the home at the time of applying for the plan.
  • The home mortgage shall be taken before January 1, 2009. The reason for this compulsion it because of the fact that mortgage rates dropped low after the stated date.
  • The mortgage payments should be more than 31% of the monthly income of the home owner to qualify for the federal home affordable modification program.
  • The mortgage should worth not more than $729,750. Otherwise the mortgage loan cannot be qualified for the modification program.
  • The loan shall be HAMP participant.

Lender’s requirement differs from one lender to another. But essentially all lenders which provide modification program do not require a perfect credit score. These programs were started to improve the financial standing of the home owners so that real estate industry can contribute to the economy better than current contribution. More than half of the home owners of the country are at the verge of foreclosure because of less availability of finances.

What lenders consider when giving out HAMP is the debt to income ratio of the home owners. Not everyone can afford the HAMP. Therefore lenders analyze the financial standing of the borrower before advancing the modification loan. Those who are not able to afford even the modification plan are not eligible for home affordable plans.