Special Edition Making Home Affordable Options
by Ask Kate
Ask Kate's Special Edition of Making Home Affordable (MHA) Program Overview: Designed to support the U.S. housing crisis, discover 13 options bringing hope to struggling homeowners with underwater mortgages. Additionally, there are other MHA options beyond HARP refinances and HAMP loan modifications for you to learn about.
For example, there are 2nd mortgage reductions, military hardship resources, Hardest Hit Housing Market Funds, suspended mortgage payments for unemployed, HAFA foreclosure alternatives, $10,000 (increased from $3000) moving assistance and other options.
Several of these MHA programs can be stacked, creating awesome combinations for lowering monthly house payments.
Now onto Ask Kate's Special Edition of the Making Home Affordable Program Overview where you can review each of the 13 MHA options.
Don't forget to follow my links for more details.
Making Home Affordable Refinance for Lower Mortgage Rates
1. Home Affordable Refinance Program HARP
- For homeowners with Fannie Mae or Freddie Mac mortgages and who are current on payments but have fallen property values.
2. FHA Short Refinance
- FHA refinances with principal reductions for homeowners without FHA (not a typo), Fannie Mae, Freddie Mac, VA, or USDA mortgages and who are current on their payments but have fallen property values.
3. FHA2LP - For homeowners eligible for FHA Short Refinance, to reduce or eliminate an accompanying second mortgage.
Making Home Affordable Modification to Lower Mortgage Payments
1. Home Affordable Modification Program HAMP
- Results in a reduced monthly house payment, typically 40 percent.
2. Principal Reduction Alternative (PRA)
- For homeowners WITHOUT Fannie Mae or Freddie Mac loans to reduce the mortgage balance. More at Why Is There No Principal Reduction Alternative for GSE Mortgage
3. Second Lien Modification Program (2MP)
- For homeowners approved under HAMP, a modification or principal reduction on a second mortgage. More also at HARP and 2nd Mortgage Refinancing
4. FHA HAMP - Modifications for struggling homeowners with FHA mortgages.
5. VA HAMP and Military Hardship Resources
- Modifications for struggling veterans with VA home loans.
6. USDA's RHS - Lowers monthly house payments for struggling homeowners with loans guaranteed by the United States Department of Agriculture.
Making Home Affordable Assistance for Unemployed
1. Hardest Hit Housing Markets
(HHF) - $7.6 billion targeted to states hit hardest by the economic crisis.
2. Home Affordable Unemployment Program
(HAUP) - While unemployed homeowners look for new employment, mortgage payments can be reduced or suspended for 3 months or more.
Home Affordable Foreclosure Alternatives (HAFA)
1. HAFA Short Sale
- Up to $10,000 (increased from $3000) in relocation assistance when selling a house for less than the existing financing. Going through HAFA for short sales affords better protection because the homeowner is completely released from the mortgage debt after selling. The deficiency (the difference between what is owed and the sales price) is guaranteed to be waived.
2. HAFA Deed in Lieu of Foreclosure
- After an unsuccessful short sale, if the deed is voluntarily transferred to the loan servicer, homeowners can receive up to $10,000 (increased from $3000) in relocation assistance.
Making Home Affordable National Mortgage News
Making Home Affordable Program is a work in progress. Don't assume loan originators keep up on program changes.
You need to educate yourself and be prepared with questions. Print this page and refer to it as you interview lenders.
Keep up-to-date by following my Mortgage Blog
for MHA news, updates, enhancements, and announcements. I report them as they break.
Whatever you do, don't dilly dally. The Departments of the Treasury and HUD won't offer these loan programs forever.
March 2012 National Mortgage News: FHA Streamline Refinancing
President Obama's announces astonishing decrease in mortgage insurance premiums for FHA Streamline Refinancing Announcement
. Although not an official MHA program, it may be a comparable solution for FHA borrowers with underwater mortgages. Check it out because no appraisal is required
February 2012 National Mortgage News: Obama Refinance Plan
President Obama spoke about his proposed streamline refinance plan for homeowners who are not eligible to apply for Making Home Affordable HARP refinance at his February 2012 State of the Union Address, Blueprint for an America Built to Last
See if the program could help you by going to Ask Kate about Obama Refinance Plan
Ask Kate about MHA
This MHA overview was inspired by an initial letter and subsequent comment from a homeowner named MAK. (More on MAK's first question in a moment.)
MAK, to answer your second question about comparing HARP interest rates and lenders, here is a quote from Making Home Affordable, the government's official site.
"Call your mortgage lender, or any lender approved to do business with Fannie Mae or Freddie Mac, and ask for a Home Affordable Refinance application."
Yes, you can now shop participating HARP lenders!
Want to see MAK's first letter and my response? Go to The Bad Behavior of Making Home Affordable
Best wishes to distressed homeowners during such stressful times,
Ask Kate about Special Edition Making Home Affordable Options
or add a comment by scrolling down this page.
More Help to Save Your Home
Special Edition Making Home Affordable - 13 options for homeowners struggling with unaffordable house payments.
Loan Modification Ask and Answer - Answers to loan modification, Home Affordable Programs, HARP, and HAMP questions.
Can I do a Mortgage Loan Modification myself? The answer is yes, but...
Don't give up. With a little knowledge, you can Stop Mortgage Foreclosure.
Foreclosure Help - Act now if you think you are going to be late on a mortgage payment.
Help for locating your lender to Stop Foreclosure Now.
By understanding your Adjustable Rate Mortgage, you can anticipate and plan.
When promises to Sell Your House seem too good to be true, remember this.
A limited offer, Mortgage Debt Relief provided help for homeowners subject to additional income taxes.
How to explain to your lender that you are trying to Prevent Foreclosure.
The first step to stopping Foreclosure is understanding its impact on your life.
Stop Foreclosure. Learn from Donald Trump about negotiating a better deal.
Subprime Mortgage Loans fulfilled an important role in America.
Every homeowner with a Subprime Mortgage needs a long term plan.
Subprime Mortgages - Learn how to transition to traditional mortgage financing.
Tell a Friend Get Your Best Mortgage Rate
depends on your word of mouth. Please tell your friends about Special Edition Making Home Affordable Options