FHA-HAMP: FHA Home Affordable Modification Program
FHA-HAMP (Home Affordable Modification Program) is the primary loan modification program for FHA-insured mortgages. It combines interest rate reduction, term extension, and FHA's unique partial claim
Program Overview
FHA-HAMP (Home Affordable Modification Program) is the primary loan modification program for FHA-insured mortgages. It combines interest rate reduction, term extension, and FHA's unique partial claim option to achieve an affordable monthly payment. The partial claim is FHA-HAMP's most powerful feature: FHA can advance up to 30% of your unpaid principal balance to cure arrears, and that amount becomes a zero-interest, no-monthly-payment junior lien — essentially an interest-free loan from HUD that you don't have to pay until you sell or refinance. FHA-HAMP is generally more generous than the GSE Flex Modification because of the partial claim option. If your servicer hasn't told you about FHA-HAMP or the partial claim, they may be violating FHA servicing requirements.
Administering Agency
FHA / HUD
Eligibility
- •Must have an FHA-insured mortgage (check your closing documents or call 1-800-CALL-FHA)
- •Must be delinquent or at imminent risk of default
- •Property must be owner-occupied primary residence
- •Must have sufficient income to support the modified payment (surplus income > 0 after modification)
- •Loan must not have been modified through FHA-HAMP more than 2 times previously
- •Must not have used the maximum partial claim amount ($0 cap but FHA determines a maximum based on loan characteristics)
Benefits
- •Capitalization of arrears: past-due payments, late fees, and legal costs are added to the loan balance
- •Interest rate reduction: rate can be reduced to market rate (no explicit floor — FHA is more flexible than GSEs)
- •Term extension: loan can be extended to 360 months from the modification date
- •Partial claim: FHA advances up to 30% of unpaid principal balance as a zero-interest, no-payment junior lien — this is the most powerful feature
- •Target 31% front-end DTI ratio (housing payment ÷ gross monthly income)
- •Standalone partial claim also available for borrowers who can afford current payments but not arrears
How to Apply
Confirm your loan is FHA-insured: check closing documents for FHA Case Number, review mortgage statements for MIP payments, or call 1-800-CALL-FHA.
Contact your servicer's loss mitigation department — state that you want to apply for FHA-HAMP and request a complete loss mitigation application package.
Complete the application with: Uniform Borrower Assistance Form, hardship letter, last 2 years tax returns, last 2 months pay stubs, last 2 months bank statements.
Submit a COMPLETE application. FHA requires servicers to evaluate borrowers for ALL available FHA loss mitigation options — not just FHA-HAMP.
If the servicer denies your application, demand: the specific reasons for denial, the FHA waterfall evaluation showing all options were considered, and a written appeal form.
If you're not satisfied with the servicer's response, escalate to the FHA Resource Center at 1-800-CALL-FHA and file a CFPB complaint.
Key Deadlines
- ⏰Complete application submitted 37+ days before foreclosure sale triggers RESPA dual tracking protections
- ⏰Servicer must acknowledge receipt within 5 business days
- ⏰FHA requires servicers to complete modification evaluation before proceeding with foreclosure
- ⏰Appeal deadline: 14 days from denial notice
- ⏰FHA-HAMP is a permanent program — no expiration date
Frequently Asked Questions
What makes the FHA partial claim different from principal reduction?▼
Can I combine FHA-HAMP with HAF assistance?▼
Need Help Applying for This Program?
Knowing about a program is only half the battle. Professional Law Assist helps you complete the application correctly, provides the right documentation, meets deadlines, and escalates when servicers don't comply. Get a free case review and let us help you access the assistance you deserve.
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