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FHA Modification

The Federal Housing Administration Modification Program. If you have an FHA-insured home loan and you are having trouble paying your mortgage, you may be able to receive a more affordable mortgage payment.

Is an FHA Modification right for me?

Program goal

The goal of the FHA Modification 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 Modification Program if:

Your first mortgage is an FHA-insured home loan

How do I know?

FHA loan document

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 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 us.

If you don’t have an FHA loan, other options may be available.

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 than 12 months, please call us right away. Help may still be available.

You're 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're having trouble paying your mortgage due to an increase in your mortgage payment, a reduction in your income or other 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 to assist you. Call us to discuss your options.

If we can't find a home retention option that works with your budget, you may need to consider options that involve leaving your house. If the current market value of your house is less than the amount remaining on your loan, you may be able to sell your property in a short sale. The Federal Housing Administration (FHA) has a short sale option that provides a streamlined approval process and financial assistance to help you relocate. By working with us and completing a successful short sale, you may rebuild your credit sooner than if your home gets foreclosed.

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 such as foreclosure attorney fees, etc. These were incurred by you before you entered into the FHA Modification Program. When your FHA Modification becomes final, all prior late charges will be waived.

 

 

Footnote 1 These eligibility requirements are informational and are not intended as a commitment to modify your home loan nor is this an exhaustive list of the parameters of the Program.

Now that I am in the process, what is next?

I have called and requested an FHA Modification.

When you call us to request an FHA Modification, we will review your situation, confirm that you meet the requirements for this program and then send you a financial information packet.

Throughout the process, you'll be paired with a Customer Relationship Manager who will answer any questions you may have and help guide you through the steps you'll need to take.

I have requested an FHA Modification.

When you receive the financial information packet, you will need to complete the enclosed forms and provide all the documents listed for you. Be sure to sign and return your completed forms and documents to us as soon as possible.

Within five business days of receiving your financial information packet, we'll send you a letter to let you know if any documents are incomplete or missing.

Once we've received all of your required documents, it will take 30 calendar days to complete the evaluation process on your request and notify you of our decision.

Other options may be available. Or call us to learn more about your options.

If we can't find a home retention option that works with your budget, you may need to consider options that involve leaving your house. If the current market value of your house is less than the amount remaining on your loan, you may be able to sell your property in a short sale. The Federal Housing Administration (FHA) has a short sale option that provides a streamlined approval process and financial assistance to help you relocate. By working with us and completing a successful short sale, you may rebuild your credit sooner than if your house gets foreclosed.

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'll 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.

If you're unable to successfully complete the trial period to get a permanent modification of your home loan and your loan is not eligible for other programs, you may need to consider options that involve leaving your house.

If your house is currently worth less than the amount remaining on your loan, you may be able to sell your house in a short sale. If your loan is insured by the Federal Housing Administration (FHA), you may qualify for the FHA's short sale option, which may include financial assistance to help you relocate.

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'll 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.