Discover the 3 Different Programs Available to You to Modify Your Loan

There are three main mortgage loan modification providers and they all have different benefits and qualification processes

Fannie Mae

Fannie Mae has a streamlined modification program and it caters for the people that are serviced or are owned by Fannie Mae which is a vast majority of home owners. They will only lower the mortgage repayments to 38% of your monthly income and loan modification experts will be best placed to advise how to go about applying. The method they use is to lower the interest rate and it can be as low as 3% or by extending the term of your loan. If the borrower’s situation is not very good then they will also consider reducing the principal value.


The FHA partial claim loan modification service is for those who have a mortgage program that is insured by the FHA. What happens is that if the home owner is in arrears with their payments they will put in another deferred loan and that money is used to pay the arrears. This loan will only have to be repaid once you the house is sold or refinanced.

Private Companies

There are lots of individual lenders engaging in loan modification restoration and modified loans and they have an agreement with the government to reduce the monthly payments to 31% of the total monthly income. They like Fannie Mae achieve this through lowering the interest rates, extending the repayment period and if necessary the principal amount owing. Engaging companies like Loan Modification Depot you will get the best advice because even though they are sponsored by the government individual private companies have their own regulations

These are three main options that a person has to arrange a loan modification and it is advisable to use a loan modification specialist.