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.
- Advantages of FHA mortgages in 2019
Although the cost of an FHA-backed mortgage isn't likely to get any cheaper in 2019, access to credit for homebuyers with less-than-stellar credit should improve.