The Home Affordable Modification Program lowers homeowners' monthly mortgage payments to as low as 31 percent of their verifiable gross monthly income (i.e. 31% Debt-to-Income ratio).

Who qualifies for the Home Affordable Modification Program?

  • The home must be a one to four unit property that is your primary residence and owner-occupied.
  • The mortgage must have been originated on or before January 1, 2009.
  • The property may not be investor-owned.
  • The property may not be vacant or condemned.
  • Your total monthly mortgage payments are more than 31 percent of your gross monthly income.
  • You are at risk of foreclosure due to a significant increase in mortgage, a reduction in income, or a hardship that has increased your expenses (i.e. medical bills).
  • You owe up to $729,750 on your home.
  • You have a financial hardship and are either delinquent or in danger of falling behind.
  • You have sufficient, documented income to support the modified payment.
  • You must not have been convicted within the last 10 years of felony larceny, theft, fraud or forgery, money laundering or tax evasion, in connection with a mortgage or real estate transaction.

Who does NOT qualify for the Home Affordable Modification Program?

  • Investors
  • The property is vacant or condemned.
  • Borrowers with a mortgage obtained after January 1, 2009
  • Borrowers who owe more than the maximum loan limits (i.e. first-lien loans on owner-occupied properties with unpaid principal balance up to $729,750-higher limits allowed for owner-occupied properties with two to four units).
  • Your mortgage payment is less than 31 percent of your monthly gross (pre-tax) income.
  • Borrowers who do not have sufficient, document income to support the modified payment
  • Borrowers who do not have a financial hardship and are not delinquent or in danger of falling behind
  • Those who have been convicted within the last 10 years of felony larceny, theft, fraud or forgery, money laundering or tax evasion, in connection with a mortgage or real estate transaction

*If you qualify for HAMP and also have a second mortgage, you may also qualify for the Second Lien Modification Program (2MP).

Are there any costs associated with the Home Affordable Modification Program?

There are no costs for borrowers.

When does the Home Affordable Modification Program expire?

The Home Affordable Modification Program will expire on December 31, 2012. However, homeowners who make their payments on time may be eligible for up to $1,000 of principal reduction payments (also known as Pay-for-Performance Success Payments or incentive payments) each year for up to five years after the date of entry into the program.

For more information about the Home Affordable Modification Program, including eligibility, benefits, and how to apply, see http://www.makinghomeaffordable.gov/programs/lower-payments/Pages/hamp.aspx.

Where can I go for more information about the federal government's Making Home Affordable plan?

For more information, talk to your mortgage lender or servicer, or visit www.financialstability.gov, the government's official website for programs associated with the Making Home Affordable plan. For a list of participating lenders, click here: Home Affordable Participating Lenders.