Who is Eligible for HAFA?

Most homeowners facing financial hardship are eligible. As a rule, if a homeowner is eligible for HAMP but cannot pay the mortgage, then he or she is eligible for an assisted short sale through HAFA. However, loans owned or guaranteed by Fannie Mae or Freddie Mac do not qualify. Servicers must consider possible HAMP eligible borrowers for HAFA within 30 calendar days if the borrower has met one or more of the following criteria1:

Does not qualify for a HAMP Trial Period Plan
Does not successfully complete a HAMP Trial Period Plan
Is delinquent on a HAMP modification by missing at least two consecutive payments
Requests a short sale or deed-in-lieu2

For a loan to qualify, it must meet the following criteria:

The property is the borrower’s principal residence
The mortgage loan is a first lien mortgage originated on or before January 1, 2009
The mortgage is delinquent or default is reasonably foreseeable
The current unpaid principal balance is equal to or less than $729,750
The borrower’s total monthly mortgage payment exceeds 31 percent of the borrower’s gross income (as defined in HAMP Supplemental Directive 09-013)
The mortgage is not owned or guaranteed by Fannie Mae or Freddie Mac4

Not a CDPE? Find out more about earning the designation, becoming a member, and serving troubled homeowners in your community.

If you’re a homeowner looking for answers, or would like to determine if you qualify for HAFA, find a CDPE near you.

Last updated: 29 March 2010

Sources:

Making Home Affordable. Supplemental Directive 09-09 Revised “HAFA Consideration” p. 4 (2010): https://www.hmpadmin.com/portal/docs/hafa/sd0909r.pdf
- Updated: March 26, 2010
Ibid.
Making Home Affordable. Supplemental Directive 09-01 (2009): https://www.hmpadmin.com/portal/docs/hamp_servicer/sd0901.pdf
Making Home Affordable. Supplemental Directive 09-09 Revised “HAFA Consideration” p. 4 (2010): https://www.hmpadmin.com/portal/docs/hafa/sd0909r.pdf
- Updated: March 26, 2010