The FHA Home Affordable Modification Program is part of the federal government’s Making Home Affordable program. The goal of this program is to help homeowners with an FHA-insured mortgage lower their monthly mortgage payments to a sustainable level.
You may be eligible1 to modify your FHA home loan under the FHA Home Affordable Modification Program if:
- your first mortgage is an FHA-insured home loan
- you have had your FHA-insured mortgage for at least 12 months
- you are the owner of the home and you live in it as your primary residence
- have made at least four full payments during the life of your loan
- you are having trouble paying your mortgage (e.g. if you’ve had an increase in your mortgage payment, a reduction in your income or have suffered a hardship that has increased your expenses, such as medical bills)
- the total amount you pay each month (including mortgage principal, interest, taxes, flood and hazard insurance, and homeowners association dues, if applicable) is generally more than 31% of your current gross (before taxes and deductions) income
