Struggling home owners may qualify for federal housing programs.
The federal government offers two programs that help homeowners refinance their mortgages in order to make their payments more affordable. These programs include the Making Home Affordable Program and the HOPE for Homeowners programs.
Types
To qualify for a Making Home Affordable refinance or modification, home owners must have a mortgage guaranteed or owned by Freddie Mac or Freddie Mae. Also, homeowners must be current on their mortgage payments. In addition, your current mortgage payment must be more than 31 percent of your gross monthly income.
To qualify for the HOPE for Homeowners program, your mortgage payment must be more than 31 percent of you gross monthly income.
Features
Federal government mortgage programs allow home owners to refinance their mortgages to reduce their payments to no more than 31 percent of their gross monthly income. These programs allow homeowners to reinstate their mortgage at a lower interest rate.
Considerations
The federal government does not manage or accept applications for these programs, but rather offers mortgage companies incentives for helping struggling home owners. Homeowners who want to apply for these programs should contact their lender. Those applying for the HOPE for Homeowners program pay closing costs and mortgage insurance up front.
