FHA-HAMP

If you have an FHA loan and are having a hard time scraping together your payments, a new modification program is being launched this month that might help you out. FHA-HAMP, FHA-Home Affordable Modification Plan, is set to be running August 15th, will permanently reduce monthly payments. The extra amount is deferred to be due when the loan is paid off, and does not earn any interest until that time. That means that the home owner still owes the difference in what they original loan amount, and the amount they are paying off now, but that is only due when they sell the home, or eventually pay off the mortgage. The government initiated the FHA-HAMP due to the overwhelming interest in the Making Homes Affordable program.