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Home Affordable Modification Program

The Home Affordable Modification Program, also known as HAMP, is a program set up to help eligible home owners get a modification of their home mortgage to help make homes more affordable. HAMP was established by the Financial Stability Act of 2009.

HAMP gives lenders financial incentives to modify home loans for qualifying homeowners. Under HAMP, servicers that modify loans according to the guidelines will receive an up-front fee of $1,000 for each modification, plus “pay for success” fees on still-performing loans of $1,000 per year. The program will also provide one-time bonus incentive payments of $1,500 to lender/investors and $500 to servicers for modifications made while a borrower is still current on mortgage payments.

Although the HAMP program is supposed to create lender incentives to give modifications, there is a strict criteria as to who qualifies to receive a loan modification under HAMP.

HAMP Eligibility Guidelines

Getting a HAMP loan modification is not guaranteed. The federal government has established strict criteria on who qualifies to receive a HAMP loan modification.

Here are the basic eligibility criteria:

  • You loan must have originated on or before January 1, 2009.
  • You must live in the home you are modifying.
  • The unpaid principal balance of your first mortgage must be $729,750 or less.
  • The current principal, interest, property taxes and homeowner’s insurance payments must be costing you over 31% of your gross monthly household income.
  • Your house must be upside-down in equity by not more than 5%. For Example: if you have a $200,000 mortgage, your house must be worth at least $190,000.
  • Loans can be modified only once under the program.

Proving Your Eligibility

If you believe that you are qualified for the HAMP program, you must submit proof of eligibility to the lender. Proving eligibility is often the most difficult aspect of loan modification for homeowners to do on their own. Our law firm helps homeowners assemble the proof documentation so that our clients can be sure that their application for loan modification is supported by the proper information.

The following is a list of proof information that must be provided to prove HAMP eligibility.

  • All applications must fully document income, including paystubs and income taxes.
  • All applicants must sign an affidavit of financial hardship.
  • Proof that you live in the home will be verified through borrower credit report and other documentation such as utility bills.

Modifications for Homeowners the Do Not Qualify Under HAMP

If you do not meet the eligibility requirements for HAMP modification, there still are ways of getting a modified home loan. Most lenders have in-house loan modification programs that offer relief to homeowners. To learn more about loan modifications on real estate that is not eligible for the HAMP program, call our office for a consultation.

To learn more about the HAMP program go to www.makinghomeaffordable.gov


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