How to Benefit from the US Treasury Home Mortgage Affordability Modification Program

Who can qualify for this program? Property owners who own a (owner occupied ) single family home,
that includes 1-4 family properties, Condominiums, cooperatives, Manufactured homes that are on a fixed foundation. (Must be treated as real property under state law). Properties must be currently occupied and not
vacant, nor condemned properties.

What properties are excluded from this program? The following are a list of excluded properties for this program: Investor owned properties, 2nd homes (Vacation homes), mobile homes in a mobile home park.

What are the time periods that are applicable for this program? This program will cover all mortgage loans
that were originated on or before 1 January 2009. The program is open to applicants until December 31, 2012.

• What are the maximum loan amount that you can qualify for this program?
• 1 Unit property , the max loan balance amount is $729,500
• 2Unit property, the max loan balance amount is $934,200
• 3Unit property, the max loan balance amount is $1,129,500
• 4Unit property, the max loan balance amount is $1,403,400
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What is the responsibility of the borrowers, what documents and affidavits are going to be needed to
support this application?

• The applicant will fill out the form 4506-t (request for transcript of tax returns) and send the form out to the IRS.
• The applicant will fill out a hardship affidavit form under potential penalty of perjury.
• The applicant must represent that the do not have the liquid assets to make their payments
• The applicant will submit their most recent federal tax returns for all borrowers on the application
• Wage earners must submit their 2 most recent pay stubs.
• Self-employed borrowers must submit and obtain 3rd party documents detailing the reasonable, reliable source of income
• If the applicants back end debt to income ratio is at the max ratio of 55%. The applicant must then submit a signed statement stating that the applicant will enroll in a HUD approved credit counseling program. The loan modification application will not move forward until the applicant has formally enrolled in an approved HUD credit counseling programs

What is considered income under this program? The applicants gross monthly income is the amount before any payroll deductions, wages, salaries, overtime pay, commissions, fees, tips, bonuses, housing allowances, other compensation for personal service. Social security payments, disability payments, death
benefits, retirement funds, income from insurance policies, annuities, pensions. Rental income, unemployment
income, and other income. See your lender for details.

What are the maximum debt to income ratios for this program? The front end (PITIA), known as the principal, interest, taxes, insurance (includes home owners insurance-flood/hazard insurance), the mortgage
insurance premium cost is excluded from this program. The maximum front end ratio is 31% as the target ratio.

What is the cost to the borrower for this program? This is no cost to the borrower for apply for this application. There is a 90 trial period at the beginning period of the loan repayment plan. It is up to the applicant
to make sure that their payments are made in a timely manor with no late payments.

How often can an applicant apply for this program? Only once

What is the maximum mortgage loan term? 40 year mortgage

What is the Loan to Value, and the appraisal criteria and process for this Program?
The property valuation can not be over 60 days old. This program will accept the following valuations;
(GSE's) government sponsored enterprices, (AVM) automated valuation model, (BPO) Broker price opinion model. The appraisal cost will not be borne by the applicant.

What is the mortgage rate of this program? 2% is the floor rate. With a mortgage cap of 1% per yr. 100basis points

Who do I contact about this program? www.Treasury.gov 1(202) 622-2000, www.Fannie Mae.com ,
1 (800) 732-6643, www. FhA.gov 1 (800) 225-5342, and www.VA.gov, 1-(800) 827-100