Eligibility Requirements For The Home Affordable Modification Program In California
“It is important for borrowers to know HAMP loan modification process and requirements if they are out to apply for loan modification plan under the making home affordable program. By having proper knowledge about the entire HAMP plan, you can increase your chances of getting a loan modification approval.”
Many homeowners are suffering from income loss because of economic recession as a result of which they are finding their monthly mortgage installments difficult to pay back. But don’t worry the making home affordable program is there to help you out. You only need to know the loan modification process in order to work with your mortgage loan lender and thus, lower your monthly payments to 31% of your gross monthly income. However, lenders participating in the MHA plan follow certain guidelines for finding out whether a borrower can be eligible for a loan workout. Here is some information regarding the same to help you in your effort.
To qualify for a loan modification under the home affordable modification program, the applicant must be the primary occupant of the home. Other than that, his mortgage loan should have been sanctioned before 1st January, 2009. Apart from this, the value of the current home mortgage has to be less than $ 729,750 and the home loan has to be owned or insured by Freddie Mac and Fannie Mae. Over and above, the total monthly mortgage payment of the borrower has to be more than 31% of his gross monthly income. Thus, if you are able to satisfy these home affordable modification program guidelines, you can apply for a home loan modification under the HAMP.
When you are eligible for a MHA loan modification plan, your lender will either reduce your interest rate to 2% or extend the duration of existing home loan up to 40 years. This is because the main objective of the lender is to bring your monthly mortgage payments down to 38% of your gross monthly income and so until that is not achieved your lender may even consider forbearance of the principal loan. In any case, you will be provided a trial loan modification initially which runs in to 90 days period and if you are regular in paying the monthly installments only then you will be given a permanent loan modification for a term of five years.
Under the Obama home affordable modification program, lenders will be provided incentives of $ 1000 for approving homeowners who are eligible for the MHA plan for a period of three years. But there is condition that the borrower must be regular in dishing out the monthly payment. Thus, the MHA program is the President’s initiative to make the economy go steady and help millions of people to prevent home foreclosures across the nation.
To know more about the California home loan modification program guidelines, you can take help from reputable online mortgage service companies like USLoanz.
Processing your request, Please wait....
