These loan modifications are considered on a case-by-case basis. The information you will need to supply to your lender is your loan number, income information and documentation, most recent mortgage statement, bank statements and a letter demonstrating your financial hardship.

There are also a couple programs designed by the federal government to help struggling homeowners modify their loans. Here is information on these programs, as well as pertinent information on four of the major lenders.

FHA and VA home loans are on a comeback. With the FHA loans you have to have 3% of your own money (it can be gift money), and with a VA loan you can buy with zero down. From my experience, the more money you put down, the greater the chance your offer will be accepted when in a multiple offer situation.

Buyers should talk to their lender and be pre-qualified before looking for a home. Once they know their mortgage, they know the price range in which they need to look. It’s very disheartening to fall in love with a house that you find out you can’t afford the mortgage, and then everything else in your price range just doesn’t measure up. Also, a mortgage pre-approval letter from your lender should accompany your offer. Most sellers won’t even consider an offer without a mortgage pre-approval letter.

If you need me to put you in touch with a reputable lender to find out your qualification or have other questions about mortgages, feel free to send me an email.