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Can I use HAMP to modify the mortgage on my FHA rental property?

Q: I have an FHA loan on a home that is currently being used as a rental property.  I have received conflicting information about whether I can modify the loan under HAMP.

A: HAMP is only available for loans owned or backed by Fannie Mae or Freddie Mac, so your FHA-backed loan isn't eligible for HAMP per se.

There is an FHA-HAMP program: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/nsc/faqlm. However, you are likely ineligible, since the guidelines state:

Property Eligibility: The property securing the FHA-insured property must be the mortgagor’s primary and only residence; and only single family (1 to 4 unit) properties are eligible.

Since your loan is on a rental/investment property you would be ineligible. You can follow this link (which opens into a Word document) for more information: http://portal.hud.gov/huddoc/09-23ml.doc.

Ask the expert
Keith Gumbinger
Keith Gumbinger
Mortgage Expert
Vice President, HSH.com
About Keith: Mortgage market observer and analyst with 35 years experience... (more)
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