There’s good news for military home owners who have been permanently moved because of a job. Effective June 1, the rules concerning who is considered owner-occupants changed, and some military families could qualify for the Home Affordable Modification Program (HAMP). The HAMP program helps lower monthly mortgage payments and modifies home loans.
For military members who have been displaced because of an out-of-area job transfer like a “Change of Station” order, they might qualify under the new rules. The update was made by Treasury Assistant Secretary, Tim Massad, and Assistant Director for Servicemember Affairs, Holly Petraeus. Borrowers who intend to return to their home when possible, or who do not own another single-family residence, could qualify.
The HAMP program is just another way the government is hoping to ease the housing crisis.
In addition to military home owners, the Obama Administration expanded the population that may be eligible for the Home Affordable Modification Program to include:
- Homeowners who are applying for a modification on a home that is not their primary residence, but the property is currently rented or the homeowner intends to rent it.
- Homeowners who previously did not qualify for HAMP because their debt-to-income ratio was 31% or lower.
- Homeowners who previously received a HAMP trial period plan, but defaulted in their trial payments.
- Homeowners who previously received a HAMP permanent modification, but defaulted in their payments, therefore losing good standing.
Military and civilian home owners who fall into these categories should check with their mortgage servicers to see if they are eligible to begin the HAMP evaluation process. There are a variety of forms you will need to fill-out as part of the verification process, including a verification of income.