Home Affordable Unemployment Program (UP)

The Home Affordable Unemployment Program is a government program that is designed to provide a help to those that are having trouble making their mortgage payments and they are unemployed. Here are the basics of the Home Affordable Unemployment Program and how it works.

Home Affordable Unemployment Program

This program is an extension of the Making Home Affordable Program. The basic idea behind the program is that if you are unemployed and you are unable to continue making your mortgage payments, your mortgage lender may be able to suspend your payments or reduce them for a certain amount of time. The minimum amount of time that you will have with this program is three months of suspended payments. Depending on the situation, you can get a longer amount of suspended payments. During the time that you are receiving suspended payments, you have to be looking for a job. Once you receive new employment, you are not going to be able to continue to get suspended mortgage payments.

Eligibility Requirements

In order to get involved in this program, you are going to have to meet certain eligibility requirements. For one thing, your mortgage payment has to be more than 31 percent of your gross monthly income. This percentage is what the government considers to be difficult to afford for most homeowners.

The loan on your home has to be a first mortgage and it has to have been originated on or before January 1, 2009. This means that if it is a second mortgage, you are not going to be eligible for the program. The mortgage also has to be less than $729,750 in order to qualify.

The property that you are wanting to include in the program has to be your primary residence. You cannot use this program for rental property or vacation homes. You will also have to be a first-time applicant for this program. If you have already received assistance from the Making Home Affordable Program, you are not going to be able to get any more help. You will also have to have been declared ineligible for the Home Affordable Modification Program. The Home Affordable Modification Program is a program that is designed to alter the existing terms of your loan in order to make your mortgage payment more affordable. 

You also have to be able to prove that you are actually unemployed. This can be done by showing that you are receiving unemployment income. If you cannot document this, you are not going to be able to qualify for the program.

How to Apply

In order to receive benefits from this program, you are going to have to apply for it. To apply for the program, you need to contact your mortgage lender. You will need to find out if they participate in the program and then fill out an application form. You are not going to have to pay anything to apply for this program. You will have to provide them with the appropriate documentation and then they will let you know if you have been accepted into the program.