Home Affordable Modification Program
If you answer yes to all of these questions, you may be eligible to have your home loan modified under the Home Affordability Modification Program. If you answer no to any of these questions, you may still be eligible for a loan modification. Please contact our offices to see if you qualify.
- Is the mortgage you want modified on your primary residence?
- Is the amount owed on your first mortgage equal to or less than $729,750?
- Have you experienced a hardship of some kind that is causing you to have trouble paying your mortgage? (This can include an increase in your interest rate, an illness, medical bills, divorce, separation, relocation, job loss or loss of income etc.)
- Did you receive your current mortgage before January 1, 2009?
- Is your payment on your first mortgage (including principal, interest, taxes, hazard insurance and homeowner's association dues, if applicable) more than 31% of your current monthly gross income?
Gross Monthly Income: is the total wages (before taxes) received monthly from all borrowers on your mortgage. This is your non-taxed income not the amount you take home every month. Add all of the gross monthly income from all borrowers to arrive at your total gross monthly income figure.
Mortgage Payment: is the total amount of your mortgage payment to include principal, interest, property taxes, hazard insurance and homeowner’s association fees, if applicable. This amount is to include your first mortgage only not any secondary mortgages on your property. Be sure to review your mortgage statement carefully to see if your taxes and insurance are being escrowed into your overall payment as part of your entire monthly mortgage payment.
Mortgage Payment Calculation: this is a calculation to determine your Front End Debt-to-Income Ratio that determines your eligibility into the Home Affordable Modification Program. If your current monthly mortgage payment is above 31% of your gross monthly income, you may be eligible for the program.
Monthly Mortgage Payment ÷ Gross Monthly Income = Mortgage Payment Calculation
Example: $2500 (Monthly Mortgage Payment) ÷ $5000 (Gross Monthly Income) = 50%, because this figure is over 31% you would be eligible for the Home Affordable Modification Program.
We at National Mortgage Help Center can help you determine if you are eligible, but only your lender will ultimately determine if they will grant a loan modification. To qualify, you will generally need to show that you have the required income to make the reduced payments for an extended period of time.
Contact an Advocate today to see how we can be of help to you or Apply Now to see if you are eligible for a loan modification.
