FHA-Home Affordable Modification Program

What is FHA-Home Affordable Modification Program?

Enacted: August 15, 2009 – effective for mortgages originated on or prior to January 1, 2009

FHA-Home Affordable Modification Program or FHA-HAMP was developed to extend the benefits offered by Home Affordable Modification Program to FHA insured mortgages. Homeowners in hardship who hold FHA-insured mortgages and qualify for FHA-HAMP can get up to 30% partial claim of the unpaid principal balance combined with a loan modification. The loan modification is re-amortized to a 30-year fixed mortgage.

Purpose of FHA-Home Affordable Modification Program

Home ownership preservation and home values protection.

Goal of FHA-Home Affordable Modification Program

Main goal of the program is to help homeowners in hardship with FHA insured mortgages by reducing their principal and lowering their monthly payments to less than 31% of their gross monthly income.

Who may be eligible?

All homeowners in financial hardship who:

  • Are delinquent or in danger of falling behind on their mortgage payments
  • Own the home secured by FHA-insured loan as their primary residence
  • Have a monthly mortgage payment over 31% of their gross monthly household income
  • Have back end debt-to-income ( DTI ) ratio less than 55%
  • Have made at least 4 full payments since received the FHA loan
Contact your mortgage company for details to see if you are eligible.

How to apply?

Contact your mortgage company servicer – the company to which you make your monthly mortgage payments and ask them for FHA – Home Affordable Modification Program.

For more information on FHA-HAMP participating mortgage companies and eligibility requirements and application process call FHA National Servicing Center at 877-622-8525.

You can call also a HUD-approved housing counselor at: 888-995-4673  (Hearing impaired: 877-304-9709 TTY) to help you understand your options, prepare your application, and work with your mortgage company.