President Obama's home affordable modification program, also known as HAMP, is designed and backed by the government to help financially struggling homeowners get a mortgage modification. Homeowners with upside down home loans will now be able to get a monthly mortgage payment that equals 31% of their gross monthly income. Many homeowners will be able to save a lot of money by taking advantage of this stimulus program, and many already have.

This stimulus is part of a $75 billion plan that is being used to help the economy, and the struggling housing market. In order to get approved for the Obama stimulus plan, which has many benefits, homeowners must meet some basic eligibility requirements.

HAMP basic eligibility requirements:
1.The home that mortgage modification is being applied for must be the homeowners main residence. This program does not apply to second homes, vacation homes, or investment properties.

2.The mortgage must have been on, or after, January 1st of 2009.

3.The home in question must not have a mortgage that was over $729,000 for a basic single family home.

4.Homeowners must have a letter of financial hardships, which include reasons and details as to why, to get approved for a home loan modification using this stimulus plan.

5.The homeowner should not have been more than 30 days late making any mortgage payments in the past full year.

6.Homeowners must be currently paying more than 31% of their gross monthly income. This can include taxes, homeowners insurance, HOA fees, and principal on the loan.

These are the minimal basic requirements for getting a home loan modification approval under President Obamas stimulus program. Each mortgage lender or bank may have additional, or fewer restrictions. This is though a good start on figuring out if you are able to take advantage of this government program to save a lot of money, prevent a foreclosure, or both. If you do not meet the requirements for this loan, you may for meet the requirements for a mortgage refinancing. Either way, government help is available to nearly any struggling homeowner.

Millions of homeowners are struggling and looking for a way to get financial help. That help is now available thanks to the Obama administrations ambitious program that is aimed at helping homeowners. There has never been this much help available for mortgage modifications, and homeowners need to take advantage of it while it lasts. Even people who have been denied in the past are finding it much easier this time around. Banks and mortgage lenders are actually searching for people to help because they get financial incentives from the government for doing so.

No matter what though, make sure to call around to a variety of different lenders and banks. Make sure they know that you are comparison shopping before you commit to anyone. Take your time and ensure that the decision you make was the best one available to you. You do not have to stick with the lender you have now, you have the choice to switch.

-M Petrone

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