Explore the Mortgage101 Library
Check Local Mortgage Rates
Loan Program Choices
Use our calculator to find out your estimated monthly payment in advance: Enter the loan amount, interest rate, and length of mortgage.
Try our Mortgage Payment Calculator
The Hope for Homeowners (H4H) mortgage program is a program that is provided by the FHA, or Federal Housing Administration. This program has been around since 2008 and it is designed to help homeowners that are having trouble with their mortgages. Here are the basics of The Hope for Homeowners program and how you can determine if you are eligible.
This program is designed to allow homeowners that are near foreclosure to refinance their mortgages. If you are upside down on your mortgage and you cannot sell the property, this program provides you with more options. In order to qualify for this program, you will need to meet basic requirements. One of the requirements is that you should be struggling to make your loan payments. Lenders require that homeowners can document financial difficulties.
In addition to being in bad financial shape, the homeowner must not have committed fraud within the last 10 years. They also have to have a mortgage that was not obtained by falsifying loan documents.
Another requirement is that the homeowner must agree to give some of the equity in their home back to the government when they sell the property. They have to provide the government with 50 percent of the equity that they generate over the time that they live in the property.
In order to get involved with this program, the mortgage also has to meet some requirements. You have to be able to refinance your existing mortgage into a new mortgage. You will be required to have some equity in the property.
Also, the mortgage also has to be more than the homeowner can afford. In fact, in order to qualify, the mortgage payment has to be over 31 percent of the gross monthly income of the homeowner. Therefore, the homeowner has to really be struggling to make the payments at this percentage requirement.
The most difficult requirement of all may be that you will need to find a mortgage lender that is willing to participate in the Hope for Homeowners (H4H) program. There are not many lenders that are taking part in this program.
In addition to meeting borrower and mortgage requirements, the property also has to meet some specific requirements in order to qualify for the Hope for Homeowners (H4H) program. You can only use this program for your principal residence. If you have a vacation property, or rental properties, you cannot use this program for those properties.
In order to qualify for this program, you are going to have to meet some other requirements as well. You are going to have to have a certain amount of income and assets. Each lender will have their own underwriting standards. You will have to provide documentation of your income through pay stubs or tax returns. You will also have to provide identification, such as your drivers license and social security card in order to verify your identity.
- How to Get Approved for an FHA Loan despite Bad Credit
- 3 Common Short Sale Mistakes
- Second Mortgages: Advantages and Disadvantages
- Short Selling a Rental Property
- 3 Reasons Banks Reject Short Sales
- Should You Refinance? Make Sure the Timing is Right
- What Lenders Don't Reveal About Home Equity Loans
- Alternatives to Getting a 2nd Mortgage
- Low Down Payment Loan Qualification