Find information on the Home Affordable Foreclosure Alternatives (HAFA) program, which is the new federal government short sale program. This is a plan created by the Obama administration that provides financial incentives to both homeowners and lenders. It both encourages the parties to use short sale process by providing financial aid to banks and homeowners, and it also simplifies the process. Find more on the short sale program from HAFA.
As the housing market shows more upward movement, the temptation to borrow more than you can afford becomes enticing. That’s why it’s important to really look at how much you can spend. Your mortgage payment should be comfortable even if it’s a stretch, not a weight that drags you down each month. The lender will look at your income, debt and savings, and is required by federal regulation to demonstrate your ability to repay a loan. So while that determines how much you can borrow, it isn’t necessarily what you can afford.
Mortgage Payment Assistance (MPA) offers up to 24 months of assistance for eligible applicants who have had an unemployment or underemployment hardship in the last 36 months and need help paying mortgage monthly. Of the 24 months, up to 12 months may be used to reinstate first and some second mortgages. Mortgage payment assistance ends when the homeowner is able to sustain the mortgage payment, when reserved funds are exhausted, or when 24 monthly payments have been provided, whichever comes first. Under MPA, you may be required to make partial payments toward your mortgage during your participation in the program. If you are now employed and are able to make your currently monthly payments but are behind on your mortgage, MPA offers a onetime payment to your lender for up to 12 months of mortgage help to bring your mortgage current.

Requirements for getting a mortgage loan often change, and if you are considering applying for a home loan in the near future, be ready to cough up the cash. Walking into a lender’s office with zero cash is a quick way to get your home loan application rejected. Mortgage lenders are cautious: Whereas they once approved zero-down mortgage loans, they now require a down payment.
Oftentimes, rates you see in advertisements online aren’t necessarily for the loans you qualify for. So you’ll need to investigate. Interest rates vary by location and can change daily. And they vary depending on your specific financial picture, such as income, credit score, and debts.  A good place to get an idea of what rates are available to you right now is to search for interest rates on Zillow. You can get free quotes anonymously, based on your specific financial picture, so you don’t have to worry about being hassled. You’ll also be able to see mortgage rates from multiple lenders so you can easily compare rates.

Note that the Hope for Homeowners program indicated above has been expanded. Families can now receive aid on a second mortgage, and more lenders are participating and cooperating with the FHA. Banks and lenders have been provided further incentive to participate in the program. Find how the FHA Expanded Hope for Homeowners to assist more borrowers.

Refinancing your mortgage simply means you’ll be replacing your current mortgage with a new home loan. You’ll get a new rate, new terms and conditions, new closing costs, and the possibility to choose a new lender. Refinancing can be a good idea when mortgage rates are low (as we saw at times in the past year) or when and if your home has seen a big jump in its market value.**


*The funds available to the borrower may be restricted for the first 12 months after loan closing, due to HECM reverse mortgage requirements.  In addition, the borrower may need to set aside additional funds from the loan proceeds to pay for taxes and insurance. Information accurate as of 10/1/2017. Update underway to reflect latest changes to PLFs by HUD
In some cases, you may not be required to provide all of that information. Some loans are referred to as low doc or no doc because they don't require you to prove any of the statements that you make to your underwriter. These loans are normally more expensive, but can be easier to obtain. Additionally, you can obtain a preauthorization before you submit an offer on a home you would like to buy. That can speed up the process, and also shows the seller that you are serious about the purchase.
Coming up with a down payment can be the one of the biggest obstacle when buying a home, especially for first-time home buyers. No matter what type of loan you choose, you will likely have to put some amount of money down. Saving up for a down payment can seem like a daunting task, but with the right planning and budgeting you can reach your savings goals faster than you think. Click here for strategies that can help you save for a down payment.
This is the distinguishing characteristic of a fixed mortgage. The interest rate you start off with stays with you for as long as you keep the loan, even if you keep it for the full 30-year term. The rate assigned to an adjustable mortgage, on the other hand, can change over time. These are very important differences, from a home buyer’s perspective.

If you have lost your job, had a reduction in work hours or income, or are unemployed, then you may qualify for assistance. Homeowners can receive mortgage help from the federal government Home Affordable Unemployment Program. This program can reduce someone’s monthly mortgage payments for up to 6 months, which will provide an individual time to find a new job. Read more on the unemployment mortgage program.


The US Treasury administers the Hardest Hit Fund, which provides aid to the states that were most impacted by the economic crisis. Each of these states have local agencies that help homeowners in various ways, including mortgage payment assistance for the unemployed, principal reduction, and transactional assistance. This helps people either afford the homes they’re in, or move to more affordable housing.
Freddie Mac has also opened Borrower Help Centers in several cities around the country. The centers will provide people with direct access to a housing specialist. Meet with a counselor to explore options for mortgage assistance, including loan modifications, overall debt counseling, and other resources to deal with a delinquent mortgage and other financial problems. Find a Borrower Help Center to learn more.
Prepare to spend some time sitting back and waiting. Each application is thoroughly reviewed by the grant-making agency, sometimes causing a long lag time between when you submit your application and when you are notified about the decision. In the meantime, don't stop making your mortgage payments, or at least pay as much of them as you are able to, or it may look like you aren't taking your mortgage obligation seriously.
The federal government’s Making Home Affordable program is working with various banks and lenders to ensure that they provide millions of homeowners with loan modifications. In some cases the government may be subsidizing fees and interest rate reductions. Learn about this and other programs, all of which can ensure people get relief from their mispriced mortgage payments. The other option is the Homeowner Affordability and Stability, which is part of Make a Home Affordable.
Many Community Action Agencies have programs and resources that homeowners can take advantage of. While they primarily focus on providing counseling, some of the community action agencies can provide cash grants, mediation services, and other tools to help a homeowner prevent or stop a foreclosure filing. Even if they don’t offer direct financial aid or can’t meet your specific need, almost all agencies can provide referrals and guidance. Find how to apply for free foreclosure counseling from community action agencies.
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