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Chicago Home Loans Eligible for Making Home Affordable Program

The Making Home Affordable Program (MHA) is a critical part of the Obama Administration’s strategy to combat the current recession, help homeowners avoid foreclosure, and reverse the damage to the housing market in the wake of the subprime mortgage crisis. Many people with Chicago home loans – and nationwide – can benefit from this program.

The program was designed to meet the needs of struggling homeowners who are dealing with increased expenses and/or a loss of income. There could be many reasons why your expenses have increased; You have bills from a recent medical emergency, you or your children could be attending college, or you may be picking up the pieces after a separation or divorce. Your hours may have been cut, or your business stumbled, which means that you are now trying to get by with less. The MHA program could be the answer for you depending on your situation.

Making Home Affordable Programs for Chicago Home Loans:

Home Affordable Modification Program (HAMP)

This program exists for those who are not unemployed, but still struggling to make mortgage payments. HAMP can lower monthly mortgage payment to 31% of verified monthly gross (pre-tax) income, which can provide a savings of a couple hundred dollars per month, depending on your income

Principal Reduction Alternative (PRA)

PRA was designed to help homeowners by encouraging mortgage servicers and investors to reduce the amount owed by homeowners. You may be eligible for this program if your home is currently worth significantly less than you owe on it.

Second Lien Modification Program (2MP)

This program works in tandem with HAMP to provide an array of solutions for homeowners with second mortgages. The idea is to increase the long-term affordability and sustainability of your home. You can be evaluated for a second lien modification if the servicer of your second mortgage is participating. Additionally, if your first mortgage was permanently modified through HAMPSM and you have a 2nd mortgage on the same property, you may be eligible for a modification or principal reduction on your second mortgage as well.

USDA’s Special Loan Servicing

You may be eligible for a program through the USDA if you have a loan that is guaranteed by the Section 502 Single Family Housing Guaranteed Loan Program. These loans are primarily used to help low-income individuals or households purchase homes in rural areas.

Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities.

Veteran’s Affairs Home Affordable Modification (VA-HAMP)

If you have a loan that is insured or guaranteed by the Department of Veterans Affairs (VA), so you may be eligible for a program through that government agency.

The Making Home Affordable Program has been a boon to many distressed homeowners, as housing statistics show from the Obama Administration’s most recent Housing Scorecard. According to the report,

“More than 5.6 million modification arrangements were started between April 2009 and the end of December 2011 – including more than 1.7 million HAMP trial modification starts and nearly 1.2 million FHA loss mitigation and early delinquency interventions. More than 930,000 homeowners have received a HAMP permanent modification to date, saving an estimated $10.5 billion in monthly mortgage payments. The Administration’s programs continue to encourage improved standards and processes in the industry, with HOPE Now lenders offering families and individuals more than 2.6 million proprietary mortgage modifications through December.”

Check out the variety of options available in the Making Home Affordable Program. You needn’t have lost your job to qualify, so if you are struggling to meet your monthly Chicago home loan payments it could be very beneficial for you to explore what the program has to offer.