Is the FHA Home Affordable Modification Program right for me?
Program goal
The FHA Home Affordable Modification Program is part of the federal government’s Making Home Affordable program. The goal of this program is to help homeowners with an FHA-insured mortgage lower their monthly mortgage payments to a sustainable level.
Eligibility
You may be eligibleen_fha_eligibility to modify your FHA home loan under the FHA Home Affordable Modification Program if:
your first mortgage is an FHA-insured home loan
How do I know?
One quick way to check and see if your mortgage may be FHA-insured is to look at page 2 of your monthly loan statement. On the right hand side of the document under “Loan Type and Term”, you’ll see the length of the term and the type of loan that our system shows you may have.
If you’re having difficulty finding the information, call one of our home retention specialists at 1.800.846.2222 and let them help you determine whether or not your mortgage is an FHA loan.
If you do not have an FHA loan, you may be eligible for a modification under the Home Affordable Modification Program.
you have had your FHA-insured mortgage for at least 12 months
Less than a year?If you’ve had your FHA-insured mortgage for less 12 months, help may still be available.
Call us today at:
1.800.846.2222
8am-12am EST Mon-Fri
8am-8pm EST Sat
3pm-12am EST Sun
you are the owner of the home and you live in it as your primary residence
have made at least four full payments during the life of your loan
you are having trouble paying your mortgage (e.g. if you’ve had an increase in your mortgage payment, a reduction in your income or have suffered a hardship that has increased your expenses, such as medical bills)
the total amount you pay each month (including mortgage principal, interest, taxes, flood and hazard insurance, and homeowners association dues, if applicable) is generally more than 31% of your current gross (before taxes and deductions) income
There may be other options available to assist you. Call us at 1.800.846.2222, 8am-12am EST, Monday-Friday; 8am-8pm EST Saturday; 3pm-12am EST Sunday, to discuss your situation.
Program at a glance
Step 1: If you think you meet the minimum eligibility requirements, or even if you are not sure, please call us to request an FHA Home Affordable Modification assessment. We’ll review your situation, confirm whether or not you meet the requirements of this program and then send you a financial information packet.
Step 2: Once you’ve received your packet, you need to fill out the forms and collect your documents. Sign and return the information to us as soon as possible. We can’t evaluate you for a trial modification without all of your required documentation.
Step 3: If you qualify for the program, you may enter a trial period of at least 3 months. Making all of your payments on time in the amount of your Trial Period Plan payment during this time will demonstrate that you can afford the modified payments and that they work within your budget.
Step 4: If you successfully make all of your Trial Period Plan payments and your financial circumstances have not changed, you'll receive a Modification Agreement defining the changes. This Agreement must be signed, notarized and returned to us—then your modification will be officially made permanent.
Get more details on the FHA Home Affordable Modification Program.
There are no fees and no minimum credit score requirements with this program, however you will be responsible for certain costs, expenses and fees associated with the servicing of your loan (e.g., foreclosure attorney fees, etc.). These were incurred by you before you entered into the FHA Home Affordable Modification Program. When your FHA Home Affordable Modification becomes final, all prior late charges will be waived.
How do I get started with an FHA Home Affordable Modification?
Call us to request an FHA Home Affordable Modification
When you call us to request an FHA Home Affordable Modification, we’ll review your situation, confirm that you meet the requirements for this program and then send you a financial information packet.
Call us today at:
1.800.846.2222
8am-12am EST Mon-Fri
8am-8pm EST Sat
3pm-12am EST Sun
Call Information Sheet » Opens a new window
To help you keep track of important deadlines and take notes during the call, please print out this form prior to calling.
After you receive the packet
When you receive your financial information packet, you’ll need to complete the enclosed financial forms and submit proof of income.
Each borrower listed on the loan will be required to fill out and sign:
a Request for Modification and Affidavit (RMA)
a Dodd-Frank Certification—a form in which you certify that, within the past 10 years, you have not been convicted of certain crimes related to a mortgage or real estate transaction.
You can expect to hear back from us within 10 business days from when we receive all your required documents. The purpose of contacting you is to confirm receipt of your information, let you know how the evaluation process works and how long it takes—typically about 30-45 calendar days. If documents are missing, we may contact you to let you know what information you need to send us.
Now that I’m in the process, what’s next?
If you’re already in the process of modifying your loan through the federal government’s FHA Home Affordable Modification Program, we can help you understand what you need to do next.
I have called and requested a FHA Home Affordable Modification
If it was confirmed during your phone call that you meet the minimum eligibility requirements, we'll send you a financial information packet with forms to complete and specifying what additional information you'll need to submit.
I have requested an FHA Home Affordable Modification
When you receive your financial information packet, you'll need to complete the enclosed financial forms and submit proof of income. Each borrower listed on the loan will be required to fill out and sign:
a Request for Modification and Affidavit (RMA)
a Dodd-Frank Certification—a form in which you certify that, within the past 10 years, you have not been convicted of certain crimes related to a mortgage or real estate transaction.
You can expect to hear back from us within 10 business days from when we receive all your required documents. The purpose of contacting you is to confirm receipt of your information, let you know how the evaluation process works and how long it takes—typically about 30-45 calendar days. If documents are missing, we may contact you to let you know what information you need to send us.
Other modification options may be available. Call us at 1.800.846.2222, 8am-12am EST, Monday-Friday; 8am-8pm EST Saturday; 3pm-12am EST Sunday to hear more about these options.
If we can't find a modification option that works with your budget, you may need to consider options that involve leaving your home. If the current market value of your home is less than the amount remaining on your loan, you may be able to sell your home in a short sale. We offer programs that provide a streamlined approval process and financial assistance with relocation. By working with us to successfully complete a short sale, you may qualify for financing for future credit sooner than if you do nothing and allow your home to go through a foreclosure.
I have made all my payments during the trial period
If you successfully make your Trial Period Payment Plan payments during the trial period and your financial circumstances have not changed, you will be approved for a permanent modification of your loan. You must continue making your Trial Period Plan payments until you receive a letter and Modification Agreement from us—this may be longer than three months.
Each payment must be made in the amount of your Trial Period Plan payment and in a timely manner until you receive this agreement and your modification has been officially made permanent.
Now that you've got a new monthly payment amount, it's a good time to see how it fits in with your other financial obligations. You'll want to make sure that the payment amount is sustainable over the long run - and an updated budget is an effective way to do this.
A realistic budget lets you take a close look at exactly how much money you have coming in, and where it's going. You'll be able to see where you may be spending too much and identify specific areas where you may be able to cut back.
If you are unable to successfully complete the trial period to get a permanent modification of your mortgage, you may need to consider options that involve leaving your home.
If the current market value of your home is less than the amount remaining on your loan, you may be able to sell your home in a short sale. We offer programs that provide a streamlined approval process and financial assistance with relocation. By working with us to successfully complete a short sale, you may qualify for financing for future credit sooner than if you do nothing and allow your home to go through a foreclosure.
I have made all my payments during the trial period
If you successfully make your Trial Period Payment Plan payments during the trial period, you will be approved for a permanent modification of your loan. You must continue making your Trial Period Plan payments until you receive a letter and Modification Agreement from us—this may be longer than three months.
The Modification Agreement you receive from us defines the changes to your home loan. This agreement must be signed, notarized and returned to us before your modification becomes permanent.
We strongly encourage you to continue making your monthly mortgage payments at least in the amount of Trial Period Plan payments until you receive this agreement and your modification has been officially made permanent. Not staying current on your monthly mortgage payments could negatively impact your credit.
Home Loan Assistance Frequently Asked Questions
To determine if your mortgage is an FHA loan, look on your HUD-1 Settlement Statement. In section B of the agreement, if the first box, labeled FHA, is checked, your mortgage is an FHA loan.
If you’re having difficulty finding the information, a home retention specialist can help you determine whether or not your mortgage is an FHA loan.
No. If you're struggling now, or believe it will soon be difficult for you to make your next mortgage payment on time due to a hardship (you may hear this referred to as "imminent default"), you may qualify under the FHA-HAMP Program. As a homeowner, you may find yourself in this situation because of a significant increase in your mortgage payment, a significant reduction in your household income, or some other hardship that makes it difficult to pay your mortgage. You will be required to document your income and expenses and provide evidence of the financial hardship.
