Who is eligible for this program?

• Borrowers who are current and are currently delinquent on their existing loans at the time of refinance are eligible.
• The borrower must not have intentionally defaulted on their mortgage or any other debt (meaning the borrower had the funds but chose not to pay the obligations) and has made a minimum of six (6) full payments during the life of the existing mortgage.
• The borrower must reside in the property and not have any other ownership interest in other property, including second homes or investment properties.
• The borrower must not have been convicted of fraud under federal or state laws in the past 10 years.
• Borrowers must certify that they did not knowingly or willfully provide material false information to obtain the existing mortgage being refinanced.
• As of March 1, 2008, the borrower’s aggregate total monthly mortgage payment debt-to-income ratio on all existing mortgages had to be more than 31% of the gross monthly income at the time.  Total monthly mortgage payment is defined as the fully-indexed and fully amortized principal, interest, taxes and insurance; this includes homeowner association fees, ground rents, special assessments and all subordinate liens.

What existing mortgages are eligible under this program?

Any type of mortgage loan is eligible including: conventional products (Prime, Alt-A, Subprime), Government loans, fixed rate or adjustable loans. However;

• The mortgage must have been originated (closed and funded) prior to January 1, 2008.
• The current priority mortgage holder must:
  • Waive all prepayment penalties and late payment fees (including NSF fees).
  • Agree to accept the new H4H loan as payment in full and release the outstanding mortgage.
• The subordinate lien holder must:
  • Waive all prepayment penalties and late payment fees (including NSF fees).
  • Release mortgage lien.

Are there any restrictions on property type?

The only eligible property types are:

• One Unit (includes condominiums, cooperatives and permanently affixed manufactured housing).
• Must be the primary residence and the only property in which the borrower has an ownership interest. If there are any non-occupant co-borrowers on the property, their interest must be quit claimed over to the borrower only prior to the application by the borrower for this program.

See the link below to more information at HUD's website.