New Hope for Housing: HAMP 2.0
By
Obama announces changes to to HAMP
While this modification sounds great each of these programs to help, has garnered little support, and been able to help very few people. The reason that each program has failed is because the guidelines for the customer to qualify are still too stringent.
The program has been modified to attempt to help those that have been effected by the economy through no fault of there own. There is increased incentives for mortgage services to help unemployed homeowners, and for those that owe more than their home is worth. This is still in an effort to help stabilize the housing market.
Eligible homeowners must live in an owner-occupied home, have a mortgage balance less than $729,750, owe monthly mortgage payments that are not affordable (greater than 31% of gross income), and demonstrate some sort of financial hardship.
Today is an important step forward for homeowners, who will now have more options to retain homeownership. The use of principal write down as an additional tool in the Home Affordable Modification Program (HAMP) will offer expanded opportunities in the case of negative equity.
Faith Schwartz
Executive Director
Hope NOW
For more information on HAMP 2.0:
FHA Refinance Fact Sheet for Underwater Homeowners
Here is a video from CNBC that goes over the new developments for HAMP:
If you cannot view the above video on HAMP Updates Click Here.
USDA still needs additional funding for the Guaranteed Rural Housing Program
One item that was completely ignored was increased funding for a program that is already working, USDA Home Loans. A USDA Home Loan is one of the best loans available, it also has the lowest foreclosure rate of any other product available, 1.72%. The Wall Street Journal had an excellent piece talking about USDA Home Loan and the need for Congress to authorize additional funding.
I urge everyone to contact your elected officials immediately and voice your concerns; Authorize additional funds for USDA Home Loans.
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[...] admin on 29. Mar, 2010 in Mortgages, USDA News, Uncategorized Great article by Jeremiah Wean on his blog talking about the changes to HAMP (aka HAMP 2.0) recently put into [...]
[...] Department of Housing and Urban Development is about to expand the “making home affordable” program to encourage more lenders to refinance loans into FHA loans, according to Deputy [...]