Loan Modification Programs for Homeowners Who are Current on Their Mortgage

To be eligible for a federal loan modification program, it is very much essential for struggling homeowners, who are faced with financial hardships, to be aware of the qualification criteria. Here is certain critical information that throws some light on ways of being eligible for a loan modification under the federal scheme.

Millions of Americans have been experiencing financial hardships primarily because of defaults on existing mortgage loan payments. Many are actually faced with the prospect of foreclosure of their houses. But there is little need to panic. The federal loan modification program offers a ray of hope to such distressed homeowners to resolve their financial crisis. You could certainly save your home by availing a loan modification by securing lower interest rates on your current home mortgages and hence considerably reduce your monthly mortgage payments. Additionally, you could be saving a lot of dollars in the long run. But to avail a home loan modification under the federal scheme you are required to qualify for it. For this, it is imperative for you to know the qualification criteria for the government loan modification process.

To be eligible for a loan modification under the government scheme, an applicant should satisfy the following basic requirements:

• The property for which the loan has to be modified should necessarily be the primary residence of the applicant.


• The value of the current home mortgage should not exceed $ 729,250 for a single unit.


• The existing mortgage should have been approved before 1st January, 2009.


• To get an early approval for a federal loan modification, an applicant is required to furnish proof of sufficient income, stable job with a regular income, copies of last two pay stubs and copies of the recent income tax returns.


• Your current home mortgage payments should be more than 31% of your gross monthly income and your existing mortgage should be owned or insured by Freddie Mac or Fannie Mae.

Once qualified for the government loan modification program, you could get access to mortgage rates as low as 2% for a period of five years, In addition, your monthly mortgage payments would not exceed 31% of your gross monthly income. Normally, there are no processing or closing fees associated with the modified home mortgage loan.

When applying for a federal home mortgage modification an applicant is required to provide an affidavit of listed financial hardships along with the application. It is here that you need the assistance of a loan modification attorney. And apart from the aforesaid eligibility requirements, there could be other conditions as well. Nevertheless, the best way is to utilize the professional services of reputed online loan modification companies like www.Refinanceitt.com who employ qualified and experienced loan modification lawyers. This could enable you to get proper guidance as well as active assistance which is desirable when applying for loan modification plans for your existing home mortgages.