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Loan Modification Programs

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

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

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

The Making Home Affordable Home Page is very informative with regards to modification availability and eligibility, and also with regards to references to similar modification programs offered by Fannie Mae, Freddie Mac, Federal Housing Administration (FHA), Veteran’s Affairs (VA), and U.S. Department of Agriculture (USDA), all of which your housing counselor will explore with you.

Please note: the deadline for all Making Home Affordable program applications is December 30, 2016.



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.

Second Lien Modification Program (2MP) 

If your first mortgage was modified under HAMP and you have a second mortgage on the same property over $5000 and costing more than $100 per month, making it difficult for you to keep up with your mortgage payments, learn more about this MHA program.

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 Alternatives (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. This program can also provide homeowners with $10,000 relocation assistance.

Home Affordable Unemployment Program (UP)

If you are unemployed, MHA's Home Affordable Unemployment Program (UP) may reduce your mortgage payments to 31 percent of your income or suspend them altogether for up to12 months.

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 Home Affordable Modification Program (FHA-HAMP)

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.

FHA Short Refinance for Borrowers with Negative Equity (FHA Short Refinance)

You may be current on your mortgage payments, but owe more than your home is worth. An FHA Short Refinance could get you into a more affordable FHA-insured mortgage by reducing the principal balance and payment.

USDA’s Special Loan Servicing  (See USDA Loss Mitigation Handbook, pp 13-15.

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 or a housing counselor for more information.

Veteran’s Affairs Home Affordable Modification

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.
See Veteran Borrowers in Delinquency and VA HAMP FAQ’s.


Housing Finance Agency Innovation Fund for the Hardest Hit Housing Markets (HHF)

Struggling homeowners of eighteen states and the District of Columbia who qualify for HHF funds, may receive help through loan modification, mortgage payment assistance, and transition assistance programs. Hardest Hit Fund programs complement the Making Home Affordable Program but are not limited to homeowners eligible for Making Home Affordable. Deadline for application is December 31, 2020.

More information about Fannie Mae Standard Modification and Streamlined Modification see below.

Fannie Mae Standard Modification 

Fannie Mae Streamlined Modification




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.

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