Owners facing financial difficulties can use home affordable modification program, or HAMP Government, change their current mortgage terms more affordable.
With HAMP loans, homeowners can lower total housing costs, including principal and interest, mortgage insurance, real estate taxes and home-bound up to 31 percent of their gross monthly income.
The HAMP is a government program designed to help homeowners struggling to meet their mortgage to modify, or change their mortgage terms. Unlike A refinancing that replaces their home loan with a new loan, a mortgage HAMP keep their current mortgage and payment terms.
If you qualify for a HAMP loan, the lender can lower your mortgage interest rate at 4.5% or even as low as 2 percent in order to reduce your mortgage payment to 31 percent ratio. The creditor may also extend the loan term to 40 years and also reduce your main. As a bonus, the home affordable modification program can pay up to $ 5,000 to pay down a mortgage if you pay the loan HAMP on time.
Here are some requirements to qualify for the HAMP loan program:
* The mortgaged property must be your principal residence. Shall not be eligible for investment and holiday homes.
* Your current mortgage must be less than $ 729,750 for a single-family house. Higher amounts apply for two, three and four unit properties.
* Your current mortgage must be given before 1 January 2009.
You must not have any mortgage end 30 days in the last 30 days.
IPGlobalProperties properties in foreclosure are eligible for HAMP loans.