FHA Affordable Programs
FHA Home Affordable Modification Programs
On August 15, 2009 FHA introduced a Home Affordable Modification Program (HAMP) of its own. It’s designed to assist home owners having trouble making their monthly payment. FHA HAMP lowers the borrower’s monthly mortgage payment to 31% of their gross monthly income.
FHA HAMP Eligibility
To be eligible for FHA HAMP:
- Your FHA insured loan must have been in default for no more than 12 months
- The home must be owner-occupied and not previously modified under FHA HAMP
- You must not have intentionally defaulted
- You must sign a hardship affidavit attesting to and describing the hardship
These are general guidelines. Contact your servicer to see if you qualify.
FHA Second Lien Program (FHA 2LP)
In August 2010, FHA introduced the FHA Second Lien Program (FHA 2LP) to help homeowners in a negative equity position. If the mortgage lender of your first mortgage agrees to modify your first mortgage through the FHA Home Affordable Modification Program (FHA HAMP), you may qualify to have your second lien reduced or removed through the FHA 2LP. The total amount of your mortgage debt after the refinance can’t exceed 115% of your home's current value.
Contact your servicer to see if you qualify.