How to Qualify For Mortgage Modification

Step-by-Step Guide

1. 1

   Step 1: Live in the home that applies to the mortgage.

   The only home that will qualify for modification is a primary residence.
2. 2

   Step 2: Observe mortgage limits.

   The government sets a cap between $417,000 and $729,750 on the amount of the mortgage that can be modified, depending on the region and average home values in your area. , In order to qualify for a federal modification program, your loan must have originated before January 1,
   2009. , If more than 31 percent of your gross income goes towards a mortgage payment, you will qualify for a federal loan modification.
   
   Include mortgage costs such as principal, interest, homeowners insurance and taxes when calculating how much your monthly mortgage payment is. , Federal mortgage modification programs require you to have a job that earns a regular paycheck. , You will need to explain how circumstances have changed, requiring help with your mortgage.
   
   Talk about the events that led up to your mortgage problem, whether it was a change in monthly payments due to an adjustable interest rate, a loss of income or unexpected medical bills. ,
3. 3

   Step 3: Check the date you signed for your home loan.

4. 4

   Step 4: Figure out how much of your income is spent on your mortgage.

5. 5

   Step 5: Demonstrate income.

6. 6

   Step 6: Explain your need for a modification.

7. 7

   Step 7: Ask your lender if they participate in the federal modification program

8. 8

   Step 8: also called the Homeowner Affordability and Stability Plan or the Homeowner Affordability Modification Program (HAMP).

Detailed Guide

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