Is there a certain amount of money that you need to make on a monthly basis to qualify for a Loan Modification

by Anonymous

Is there a certain amount of money that you need to make on a monthly basis to qualify for a Loan Modification?

Mortgage Loan Modification Answer:

The short answer is yes. The amount of money you need to make to qualify for a mortgage loan modication is ENOUGH MONEY TO BE ABLE TO AFFORD your monthly debt obligations including your mortgage payments.

According to HAMP Loan Modification Guidelines, your mortgage payments, including PITI: principal, interest, property tax, and insurance - should not exceed 31-38% of your total gross income. So if you make $1000 gross income per month, your PITI should only be $310 to $380 per month.

If your PITI is much higher than 31-38% or your gross income, you should qualify for a loan modification. Please see the HAMP Loan Modification Guidelines as well as the Traditional
Loan Modification Guidelines. If you are in California, go to No Upfront Fee Loan Modification for further assistance.

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Oct 21, 2011
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Is there a certain amount of money that you need to make on a monthly basis to qualify for a Loan Modification
by: Dean - St Louis

In addition, the lender will do a Net Present Value computation. I don't know the details of the range of values this has to fall in, but it has to be make economic sense for the investor. Obviously, if you have a $1,000 mortgage now and 31% of your Gross income is $500 the calculation may not make sense to the investor to modify. That is not to say the answer will be no, but if it is you should request the copy of the NPV calculation and check it for accuracy.

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