The Obama administration devised the HAMP (Home Affordable Modification Program) Tier 1 back in 2009. The eligibility requirements for the plan were rather inflexible, but that has changed.
Pittsfield, MA -- (SBWIRE) -- 02/27/2013 -- Reduce Monthly Payments with HAMP 2.0, Request information with Credit-yogi to Get Approved
Credit-yogi.com has looked into the less-rigid HAMP 2.0 qualifications and would like to share them, such as:
- Original Requirements
- HAMP Tier 2 Qualifications
- Mortgage Modifications Increase
- Overall Improvement
HAMP Tier 1 Qualifications
When HAMP was first developed, its eligibility qualifications were rather limited. One had to have gotten the original mortgage loan on or before January 1, 2009. The homeowner had to reside on the property he was requesting modification for, also. A borrower must be able to prove financial hardship, and modifications would only be approved for properties of 1 to 4 units. Additionally, a homeowner had to owe specific amounts in order to qualify, and his debt-to-income ratio had to be more than 31%. The HAMP 2.0 guidelines are far less rigid, as can be seen in the next section.
HAMP 2.0 Eligibility Qualifications
The original HAMP requirements have been incorporated into the HAMP 2.0 qualifications, more or less. After June 1, 2012, other borrowers were able to be approved for HAMP assistance. Those who failed to qualify for Tier 1 were offered a second chance. The type of property that could have its mortgage modified also changed to include rental and some commercial properties. Even people who defaulted on an original HAMP modification within the 3-month trial period are now able for Tier 2. Better yet, those who ended up defaulting on a HAMP 1.0 permanent modification can now become eligible again.
More Separate Mortgage Modifications
With HAMP Tier 1, a homeowner could request modification on only his first and/or second mortgages. Even at that, a second mortgage modification wasn’t easy to obtain. Now, due to HAMP 2.0 guidelines, a property owner can ask for assistance on up to three separate mortgages. The mortgages have to be on rental properties that the owner can generate money from and the properties cannot be condemned. The owner still has to prove financial hardship in order to be approved.
Effects of HAMP Improvement
The HAMP 2.0 qualifications have broadened the range of people who can apply for help. This means that more homeowners will stay in their houses and more rental property owners will not have to give up the income these pieces generate. The backbone of this country is property ownership, so every family that keeps its home and every rental owner that keeps his property strengthen the economy and improve the lives of every citizen.
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