Home Assistance Modification Program: Make Your Home Affordable

The government offers a home assistance modification program called HAMP. The purpose of this program is to help struggling homeowners stay in their homes by changing, or modifying, the terms of their original mortgages to make them easier to handle. The FHA (Federal Housing Administration) has similar offerings that provide down payment assistance for homebuyers. The following will delve into each of these services so both homeowners and prospective buyers will know how they both work.


Pittsfield, MA -- (SBWIRE) -- 12/14/2012 -- In the past, when the nation’s finances weren’t looking very healthy, many property owners fell on hard times and were facing foreclosure. When the Obama Administration came in, it developed a plan to help these people avoid foreclosure and stay in their homes. This plan is called the home affordable modification program (HAMP), also referred to as the home assistance modification program.

The qualifications for the program were not terribly stringent. A homeowner’s debt-to-income ratio had to be greater than 31%, he had to have obtained the mortgage on or before Jan. 1, 2009, he had to be able to provide proof of financial hardship, and he had to be employed. In January of this year, the eligibility requirements were expanded to include those whose D-t-I ratio was less than 31%, people who owned rental properties, people who needed help with a second mortgage, and folks who were temporarily out of work. There are strategies in place for all of these scenarios, so apply through one’s current lender for this assistance.

The FHA also offers a home loan assistance program. They have two plans in place to help first-time homebuyers with down payments and/or closing costs. The first, the 501(c)(3) is offered by non-profit charitable foundations. The Nehemiah program gives up to 3% of a down payment; HART allows up to $15,000 for closing or down payment purposes, and Neighborhood Gold grants as much as 20% of the selling price for a down payment and this 20% includes mortgage payment protection. These programs don’t have repayment schedules and a second mortgage is not required. The second plan available through the FHA is the State, County, and City-backed Down Payment Assistance program. This plan typically requires a second mortgage as security. However, these “junior” mortgages may be “silent,” meaning that there are no payments necessary at first, and the loan is sometimes forgiven after a family lives in the home for 10-20 years. All of these loan assistance programs require an FHA loan, so be sure to apply for and receive that prior to requesting down payment help. Home Loan Modification Assistance Program for Borrowers Request For More Information with .

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