Can You Qualify for the Federal Modification Loan Program?

If you have a hard time every month to cope up with the amount of money to pay regularly the mortgage loan, you may seek for a modification loan program from the lending source. Last 2009, the government launched the Home Affordable Modification Program to persuade lenders to reduce the monthly payments of mortgage of homeowners, who are at risk of failing to pay and losing their homes to foreclosure. To avail of this modification loan program, you have to meet the following requirement:

1. Your residence – To become eligible for a reduced monthly payment of your home mortgage, you should seek for modification for a house where you permanently reside. If you have difficulty in paying regularly the mortgage bills in your second house or a residence for vacation purposes, you won’t be qualified for modification in that residence with the Home Affordable Modification Program.

2. Your mortgage loan – You may qualify for an adjustment through this program of the federal government if your mortgage loan has balance of your loan is seven hundred twenty nine thousand and seven hundred fifty dollars or less. If the debt is more than the specified amount, the lender is not allowed to adjust your home mortgage loan by means of this federal program.

3. The time—The Home Affordable Modification Program is just open for homeowners who got their home mortgage loans before or on January 1, 2009. If your loan was approved after the specified date, you could still be qualified to request formally your lender to grant you the modification. The lending source will have to consent, even though without the monetary incentives from the federal government being granted to lenders that adjust home mortgage loans through the program.

4. Your financial state—The federal government also imposed monetary limitations that control if you are qualified or not to apply for loan modification through the program. You may qualify only for adjustment if your loan payment every month including the taxes, interest, insurance and dues of the association of homeowners will have a total amount of more than thirty one percent of the gross income monthly. You should be struggling also to make your monthly amortization to qualify to this program.

The program of the federal government is only open for homeowners who are struggling to pay their monthly payment of their home loans.

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