| There is a plan available for homeowners who are | | | | insurance and any homeowners dues) |
| either in default on their mortgage or facing imminent | | | | - Was you loan taken out before January 1, 2009? |
| default due to financial hardship. Sponsored by Fannie | | | | - Is your loan amount less than $729,750? (for 1 unit |
| Mae and paid for by the Treasury Department with | | | | properties-higher limit for 2-4 units) |
| $75 billion in stimulus funds, this loan modification | | | | - Are you facing a hardship situation making your |
| program could be the answer you need to say in | | | | payments unaffordable? |
| your home. Learn what is required to qualify and how | | | | The Fannie Mae Home Affordable Modification will use |
| to apply correctly so that you can get the help you | | | | the same method of determining your new modified |
| need quickly. | | | | payment for everyone, and you must be able to |
| The Fannie Mae plan is called Home Affordable | | | | meet this debt ratio calculation to qualify: |
| Modification, or HAMP. The best feature of this | | | | - New target payment equals approximately 31% of |
| program is that it offers standard approval guidelines | | | | gross monthly income |
| and standard methods of modifying your loan. This | | | | - Gross monthly income times 31% equals close to |
| means it is much easier to apply and qualify-IF you | | | | target payment |
| know what those guidelines are. If you want to get | | | | - Decrease interest rate to as low as 2%, extend |
| approved quickly, it makes sense to learn the basics, | | | | loan term to 40 years, defer or forgive principal |
| work on your loan modification forms ahead of time | | | | balance to reach target payment and meet 31% |
| and make any necessary adjustments, and then | | | | debt ratio requirement. |
| submit your proposal that you know meets the | | | | There are 4 steps to determine if you can meet the |
| approval criteria. | | | | target payment and debt ratio requirement. Learn |
| Here is the basic method that all lenders use to | | | | these steps and you can pre-qualify yourself easily. |
| determine if a homeowner is eligible for this plan: | | | | Then you can prepare your loan modification forms |
| - Do you live in the home as your primary residence? | | | | correctly, present an acceptable proposal and your |
| - Is your current mortgage payment greater than | | | | application will have a very good chance of getting an |
| 31% of your gross monthly income? (including | | | | approval quickly! |
| principal, interest, property taxes, homeowners | | | | |