There are many options for homeowners under the current Administration's stimulus package. One of these options is called the Home Affordable Modification Program (HAMP). Even though lender requirements for modification might vary from bank to bank, the government has set certain guidelines they need to follow in order to comply with the stimulus.

First and foremost, you must be the owner and occupant of the property. The property must be a one to four unit home. If it is a one unit home, your outstanding balance must be $729,750 or less. If it's a two unit home or duplex, the outstanding principal balance must be less than $934,200.00. For a triplex (three units) the balance must be equal to or less than $1,129,250.00 and lastly if it's a four unit home, the balance must be less than $1,403,400.

Another requirement is that the mortgage was originated on or before January, 2009. For those whose mortgage originated after that date, the HAMP is not available. Your total mortgage payment must be greater than 31% of your monthly income. To determine the total payment, you must include monthly insurances, taxes, and any maintenance or association fees. You must also prove that you can no longer afford the payment and will need documentation to back that claim. If your loan is backed by Freddie Mac or Fannie Mae, it is mandatory for your lender to participate in HAMP.

If your loan is not government backed, your lender's participation is optional. You can check whether your lender is participating at www.MakingHomeAffordable.gov where you can see a current list of participating lenders. Your loan servicer will be able to truly determine your eligibility. You don't need to be in default either. If you are struggling to make your payments you can qualify if your lender feels you are in risk of defaulting. If you have an adjustable rate mortgage that has recently increased or if you are about to have a rate adjustment which will significantly increase your payment, your lender might consider you an imminent risk and modify your loan.
Bryan Hendersen

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For tips and facts about how you can benefit from Obama's Home Stimulus Plan - or to find out if you qualify, visit our no nonsense home stimulus guide: http://ObamasStimulusPackage.net

Author: Bryan Hendersen