alteration Options – HAMP & Other Program Guidelines For Approval
Learning your alteration options will help you apply correctly and increase your chances of approval. A loan workout that offers a low affordable payment could be the answer for your family to keep your home. There are several options that could work for you-learn more about the plans and which one will suit your needs best.
- Government Plan: There is a federally subsidized loan alteration option for borrowers who can meet stringent approval guidelines. The federal Treasury Department truly pays lenders and homeowners to participate in the home rescue program. However, you must be able to meet the approval criteria and prove that you fit into the specific formula used to determine eligibility. The basics are that you live in the home s your dominant residence, your loan is less than $729,750 and was taken out before 1/1/09, and that your current payment equals more than 31% of your gross monthly income.
- Lender In-House or Proprietary Plans: Every lender has their own alteration option that they can custom tailor to meet a homeowner’s needs. Since these plans are not regulated by the government, they can vary a a great deal with different terms and conditions. There is a lot more flexibility with this kind of plan for qualifying, however the terms are not usually as advantageous to the homeowner as the federal program, HAMP.
Whether you qualify for HAMP or for a lender in house alteration option, it is important to acquire a loan workout that will be a long term solution for your family. Make sure that you sit down and work on your family budget ahead of time so that you know exactly what you can provide given your current circumstances. This is also an important step to help you prepare the required financial statement for your bank.
You will be asked to provide detailed information on your income, expenses and assets and the bank will review all of this to determine if you qualify for HAMP or for some other program. You can take the guess work out of figuring your debt ratio, target payment, asset ratio or the other qualifying triggers by using a software program designed just for homeowners that does all these calculations for you automatically. Simply input your own income and expenses, and it does it closest. You will be able to make adjustments to your budget before your bank every reviews it-and give yourself the inside edge to approval.