What Are the Criteria for the HAMP Loan Modification Program?

What Are the Criteria for the HAMP Loan Modification Program?

Criteria for the HAMP loan modification program are based on the status and amount of the mortgage, the date the mortgage was issued, the condition of the property and the owner's criminal history, states Making Home Affordable.gov. The home owner must have trouble paying the mortgage due to financial difficulties.

The strain of paying the mortgage must be so great that the owner is either delinquent on payments or approaching that state, according to MHA. The mortgage must have gone into effect January 1, 2009 or earlier. The home needs to be in decent condition. Condemned properties are not considered. In the previous 10 years, the owner must not have been convicted of criminal conduct related to mortgage or real estate transactions.

The amount due on the mortgage must not exceed $729,750 on a primary residence or one-to-four unit

rental property, MHA indicates. If the rental property is larger, the loan limit increases. In addition, some home owners with second mortgages are eligible for MHA's Second Lien Modification Program.

To determine if home owners meet the necessary criteria for the HAMP loan modification program, they should get in touch with one of over 100 participating mortgage servicers, explains MHA. Mortgage companies with loans owned by Fannie Mae and Freddie Mac must also be part of the HAMP program.