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If you're considering an ARM, you'll want to check out HSH's comprehensive Guide to Adjustable Rate Mortgages.

If you're considering an ARM, you'll want to check out HSH's comprehensive Guide to Adjustable Rate Mortgages.

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.

While there is an FHA-HAMP program, your mortgage is 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.

As your loan is on a rental/investment property you would be ineligible. To see the details and particulars for FHA-HAMP you can follow this link (which opens into a Word document) for more information: http://portal.hud.gov/huddoc/09-23ml.doc.

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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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