Hamp Program Qualifications

– Do You Meet Them?

By: - Mortgage - May 7, 2011
hamp program qualifications

Since the housing market is not picking up very rapidly, the HAMP program can help struggling homeowners get modified agreements from their lenders, so they don’t face foreclosure. They will need to meet the HAMP program qualifications to get a modified mortgage agreement.

So far, the new loan modification program that was begun by the current administration has helped nearly one million homeowners bring down their monthly payments, each by roughly $500. This makes HAMP a very popular program, and your mortgage qualification through the program will help to keep your finances at a more manageable level.

There are various qualifications that you must meet as a homeowner, before you will be eligible for modification and assistance through HAMP. You’ll need to have in-hand your latest mortgage and income information, so that you can document why you are having trouble meeting your mortgage payments.

You also need to verify your hardship, and the reasoning why you feel you meet the HAMP program qualifications. You can’t just lower your mortgage payment, without having incurred a hardship of some sort. That hardship must also be the only reason you can’t pay your mortgage. The hardship must have occurred as no fault of your own, like quitting your job.

The value of your property must also be in an appropriate price range in order for you to qualify for the HAMP program. It cannot be valued above $730,000, or you won’t meet that mortgage qualification. This limits assistance to people closer to middle and lower, rather than upper income classes. The HAMP program was not designed to help rich homeowners who just want to bring down their lifestyle costs a bit.

You must also have the appropriate ratio of gross income to mortgage payment, since this is one of the main HAMP program qualifications. You should already be paying about a third of your monthly income to your mortgage holder. This is the ratio at which you may feel over your head, and not simply because you can’t follow a budget, or because you spend too much money on other things.

You will only be able to get a mortgage qualification for the HAMP program for your own home. You must live there, and it must be your residence of record. You are not allowed to get a HAMP program modification for a vacation home or an investment property. In addition, you cannot qualify for this mortgage modification plan for an apartment building. The building must be a one to four-unit home.