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The initial step in getting approved for the HAMP loan modification guidelines involves a financial analysis which is performed by a loan servicer and he will analyze everything which involves the financial personality. This can include car loans, mortgage payments, child support and even credit cards. The financial analysis will figure out if the current expenses of any person are equal or exceed 55% of his monthly gross income. If the number exceeds than one needs to see a housing counselor which is approved by HUD. Loansstore can also help you in the process; its excellent services are renowned in America.

• In order to qualify for the loan modification, the current home has to be primary residence of an individual. This implies that if a person needs help with a home which he rents or use as a vacation home than the HAMP plan will help out
• The current mortgage has to be less than or equal to $729,750, in addition the mortgage should be taken before January 1st 2009.
• As per the loan modification information prime loans, sub prime loans and the adjustable loans qualify for the HAMP loan modification. Loans which are backed by any security also qualify. If a person has a mortgage which is owned by FHA or VA than a person wont be able to qualify.
• The payment on the mortgage should be more than 31% of the monthly gross income. This includes taxes, principal amount, interest, insurance, homeowners association etc.

At last the HAMP loan modification lender performs the net present value test. This test is needed to figure out if the value of the loan is more important to the investor after they are allowed to be modified. More attention is also focused on the incentive payments. If a person has a low amount of income but has a high level of equity than he would be denied. Many people are unaware as which factors affect this test.

After clearing the net present value, one needs to provide the proof of income. One should also bring pay stubs of the past two months for qualifying home affordable refinance program. If a person is self employed than his quarterly earnings report will do.