Skip to Content

Loan Modification Programs

A loan modification is dependent on a number of variables like hardship, income, loan type and program qualification, investor, length and status of delinquency.

A loan modification also could be one of several options available to homeowners who are behind on their mortgage payments.

 A housing counselor will review with a homeowner their specific financial situation and their specific goals, review loan modification and/or other options that may be available to them (below) and then work with a homeowner to develop an action plan to meet those goals.

Home Affordable Modification Program (HAMP®)
If you are not unemployed, but you’re still struggling to make your mortgage payments, you may be eligible for the Home Affordable Modification Program (HAMP®). HAMP may lower your monthly mortgage payments in order to make them more affordable and sustainable for the long-term.

Principal Reduction Alternative SM (PRA)
If your home is currently worth significantly less than you owe on it, MHA's Principal Reduction Alternative (PRA) was designed to help you by encouraging mortgage servicers and investors to reduce the amount you owe on your home.

Second Lien Modification Program (2MP)
If you have a home equity loan, HELOC, or some other second lien that is making it difficult for you to keep up with your mortgage payments, learn more about this MHA program.

FHA Home Affordable Modification Program (FHA-HAMP)
FHA, VA and USDA all offer mortgage modification programs for struggling homeowners designed to lower monthly mortgage payment to no more than 31 percent of the homeowner's verified monthly gross (pre-tax) income — making monthly mortgage payments much more affordable. If you have a loan that is insured or guaranteed by the Federal Housing Administration (FHA), you may be eligible for a program offered through that government agency.

USDA’s Special Loan Servicing
FHA, VA and USDA all offer programs for rural homeowners to lower their monthly mortgage payment to no more than 31 percent of their verified monthly gross (pre-tax) income — making monthly mortgage payments more affordable. If you have a loan that is guaranteed by the United States Department of Agriculture's (USDA) Section 502 Single Family Housing Guaranteed Loan Program, you may be eligible for a program through that government agency. Contact your servicer for information.

Veteran’s Affairs Home Affordable Modification (VA-HAMP)
FHA, VA and USDA all offer programs for struggling homeowners that strive to lower your monthly mortgage payment to 31 percent of your verified monthly gross (pre-tax) income — making monthly mortgage payments much more affordable. If you have a loan that is insured or guaranteed by the Department of Veterans Affairs (VA), you may be eligible for a program through that government agency.

Home Affordable Foreclosure Alternatives Program (HAFA)
If you can't afford your mortgage payment and it's time for you to transition to more affordable housing, the Home Affordable Foreclosure AlternativesSM (HAFA) program is designed for you. HAFA provides two options for transitioning out of your mortgage: a short sale or a Deed-in-Lieu (DIL) of foreclosure. In a short sale, the mortgage company lets you sell your house for an amount that falls "short" of the amount you still owe. In a DIL, the mortgage company lets you give the title back, transferring ownership back to them.

Second Lien Modification Program for Federal Housing Administration Loans (FHA-2LP)
If you have a second mortgage and your first mortgage servicer agrees to participate in FHA Short Refinance, you may be eligible to have your second mortgage on the same home reduced or eliminated through the FHA Second Lien Program (FHA2LP). If your second mortgage servicer agrees to participate, the total amount of your mortgage debt after the refinance cannot exceed 115 percent of your home's current value.

Home Affordable Refinance Program (HARP)
If you're not behind on your mortgage payments but have been unable to get traditional refinancing because the value of your home has declined, you may be eligible to refinance through the Home Affordable Refinance Program (HARP). HARP is designed to help you get a new, more affordable, more stable mortgage. HARP refinance loans require a loan application and underwriting process, and refinance fees will apply.

FHA Refinance for Borrowers with Negative Equity (FHA Short Refinance)
If you're not behind on your mortgage payments but owe more than your home is worth, FHA Short Refinance may be an option that your mortgage servicer will consider. FHA Short Refinance is designed to help homeowners refinance into more affordable, more stable FHA-insured mortgage. If your current lender agrees to participate in this refinance, they will be required to reduce the amount you owe on your first mortgage to no more than 97.75 percent of your home's current value.

Home Affordable Unemployment Program (UP)
If you are unemployed and depending on your situation, MHA's Home Affordable Unemployment Program (UP) may reduce your mortgage payments to 31 percent of your income or suspend them altogether for 12 months or more.

Housing Finance Agency Innovation Fund for the Hardest Hit Housing Markets (HHF)
Early in 2010, Treasury announced that the Hardest Hit Fund® would provide more than $7.6 billion in aid for homeowners in states hit hardest by the economic crisis. Since then, state housing finance agencies have used the fund to develop programs that stabilize local housing markets and help families avoid foreclosure. Hardest Hit Fund programs complement the Making Home Affordable Program but are not limited to homeowners eligible for Making Home Affordable.

American Consumer Credit Counseling, a not-for-profit organization, is dedicated to helping consumers lower credit card debt and learn how to be debt free in the future. We offer free credit counseling where our highly trained credit counselors review consumers’ finances and credit card debt problems¸ offer credit card debt advice, and help to find the best strategy for paying down credit card debt. Counselors can also provide education around many common debt reduction strategies, including debt management, credit card debt settlement, bankruptcy, and debt negotiation services. We can compare the advantages and disadvantages of debt consolidation vs. debt settlement plans offered by debt reduction companies, and help consumers choose the plan best suited to their financial situation.

SiteLock Better Business Bureau Mass Housing Approved National Industry Standards for Homeownership Education and Counseling NFCC Member