Obama Modification Qualifications

To lower your monthly mortgage payment through the Obama loan modification program known as HAMP you need to meet some general qualifications.Homeowners are only able to obtain debt help through the affordable mortgage modification program if they qualify.

HAMP eligibility requires that both the homeowner and the applicable home loan meet some basic qualifications which are listed below.

Homeowner Modification Qualifications

Directly below is a list of homeowner qualifications for HAMP.

Financial Hardship

• The homeowner must be facing a financial hardship which through no fault of their own has or will cause mortgage default.

Modification Makes Financial Sense

• An adjusted mortgage payment via loan modification must make financial sense. This means that the homeowner needs to have the income or financial means to afford the monthly payments that would result from a loan modification. The homeowner must have documented proof of income to support this.

Primary Residence

• The homeowner must use the home as their primary residence. It must be there home. You will not be able to modify through the Obama loan modification with a vacation property or second home.
• The residence must be a 1 to 4 unit home. The homeowner must occupy at least one unit if it is a multi unit property.

Modification Qualifications for Eligible Home Loans

Primary Mortgage

• The program modifies the primary mortgage.
• There is a second lien modification program that homeowners should look into if they assistance with a second mortgage or home equity loan.

Mortgage Balance Less Than $729,750.00

• This modification assistance program is not for millionaires whom need to tone down their lifestyle. Thus there is a cap of just under 3/4 of a million dollars.

Mortgage Payment at least 31% of Monthly Income

• The current mortgage payment must be 31% or more of the borrower's monthly gross income.