Home Affordable Modification Program (HAMP) Explained

HAMP is one of the programs of the U.S. government that aims to help homeowners who are at risk of foreclosure and otherwise struggling with their monthly mortgage payments.


The U.S. Department of Housing and Urban Development (HUD), in a statement, says, “HAMP lowers your monthly mortgage payment to 31 percent of your verified monthly gross (pre-tax) income to make your payments more affordable.”


“The typical HAMP modification results in a 40 percent drop in a monthly mortgage payment. Eighteen percent of HAMP homeowners reduce their payments by $1,000 or more,” HUD added.


To be eligible for HAMP, one must meet all of the following criteria:

• You occupy the house as your primary residence.

• You obtained your mortgage on or before January 1, 2009.

• You have a mortgage payment that is more than 31 percent of your monthly gross (pre-tax) income.

• You owe up to $729,750 on your home.

• You have a financial hardship and are either delinquent or in danger of falling behind.

• You have sufficient, documented income to support the modified payment.

• You must not have been convicted within the last 10 years of felony larceny, theft, fraud or forgery, money laundering or tax evasion, in connection with a mortgage or real estate transaction.


In terms of the program’s availability, not all mortgage servicer (the company to which you make your mortgage payments) participate in HAMP. It is best to contact your mortgage servicer to determine if they participate in the program.