In order to obtain the President's loan stimulus program, there are some mortgage modification requirements to meet. Since this modification is one way to help those Americans who are facing home foreclosure, it is not being handed out just to anyone. While it is true that millions of American homeowners are capable of utilizing the $75 billion budget for this program from the government, it does not apply to everyone. The reason behind this logic is so that banks and financial institutions can still be able to get some money instead of completely facing a negative amount on your home loan with them.
So that you can be eligible to meet the requirements, there are five basic criteria which you must possess. The first of which, the current home which is under discussion must be your primary residence for living. The loan modification program is not suited for homes which are either vacation, rental or secondary homes. Since the budget is intended to help rescue homes of American families, the government wants to assist those who need their primary homes first before even making a single glance at those who only want to save their secondary addresses.
The next requirement that you should meet is that you must be facing a current financial hardship escalating from a loss of employment, lowered wage, hospital bills, an increase in your mortgage payments, or even anything small which is out of your control. If you are experiencing any of the above mentioned hardship, then you are surely qualified to get an assistance for the loan modification.
Aside from the two above mentioned, if your home's value has dropped over 15%, it will have a higher chance to get a better loan approval through the program. In addition, if you have filed for bankruptcy or have also gotten the help of this program, you are no longer eligible to apply. Lastly, approved mortgage lenders who can offer such government programs should ensure that the loan amount once the modification has been computed is not higher than 31% of the income of a homeowner. In order to make this happen, loan terms and mortgage rates can be changed as deemed necessary.
Once you meet the above mentioned mortgage modification requirements, you can then find ways on how you can apply for the program with your lender. This means that you have to prepare the necessary financial documents which will support your current financial slum through your bank statements, income statements, pay slips, and other documentations.
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