When Is The HAMP Program Beneficial To You?

Published on: 02 October 2018 Last Updated on: 18 December 2021

The Home Affordable Modification Program, called HAMP, provided individuals with aid in modifying their existing mortgage loans. This program was designed to provide homeowners with some financial relief to reduce the risk of foreclosure. The application of the HAMP program can make things work for you in all aspects. Do not make your choices in grey.

Is HAMP Program Available?

At the time of this writing, the Home Affordable Modification Program is no longer available as it was. The United States Department of Treasury established the program in March 2009. It was a part of the Making Home Affordable Program. It was effective on mortgages that were originated on or before January 1, 2009. The program was set to expire on December 31, 2016, with individuals able to apply for it through September 30, 2017. As of now, it is no longer available to individuals.

What Did the Home Affordability Mortgage Program Do?

The goal of this program was to encourage loan modifications for homeowners who were at risk of becoming delinquent on their loans. It worked to help reduce the frequency of missed monthly mortgage payments. HAMP program was beneficial for you and you have to make sure you do not make your choices in the wrong direction.

Who Was Eligible for HAMP?

Not all homeowners qualified for the home affordability mortgage program. To meet the requirements, individuals had to meet specific rules including the following:

The loan had to be a first lien mortgage (second mortgages and home equity lines of credit did not qualify).
It had the be a Freddie Mac or Fannie Mae loan.
It applied to single-family homes, homes with up to four units, condos, cooperatives, and some manufactured homes.
Individuals with an FHA or VA loan could use the program (but this was not a requirement of obtaining the modification).
No vacant abandoned or condemned homes could obtain help.
Modifications could happen only one time through the HAMP program.

If the home met these requirements, a homeowner could then work with their existing lender to adjust their mortgage under some key guidelines. HAMP was not easy to qualify for, but for individuals who needed it, it provides a lifeline of important support.

To be eligible for the modifications, the borrowers had to meet specific requirements as well. These included the following:

Property owners that were current or no more than 60 days behind on their mortgage payments could be considered for a HAMP Trial Period. However, they must be determined to be in imminent default.
Borrowers could be in bankruptcy or foreclosure, or in some type of pending litigation regarding the property, such as in a judgment from lenders.
The key to obtaining these loan modifications was proving the borrower was struggling with some type of financial hardship.
Borrowers had to have an expense-to-income ratio related to housing expenses of no more than 31 percent (applied to their gross monthly income).
Individuals must still have some ability to make their monthly mortgage payments reliably after the modification occurs.

Why Did Borrowers Consider HAMP?

Borrowers were able to get help if they were struggling with financial hardship with the goal of avoiding foreclosure. This program was designed to help stop the flood of foreclosures entering the market after the housing crisis and financial difficulties that began in 2007. Individuals who qualified benefited by getting some type of modification to their loan. This may have included:

A reduction in their interest rate
Modifying the loan from an adjustable-rate mortgage to a fixed-rate mortgage
Getting a principal reduction or a forbearance
Getting a long term to help reduce the monthly payment

Over its lifetime, HAMP saw several modifications to determine which type of properties qualified and to reduce some financial strain. Most importantly borrowers were able to modify their loans so they could remain in the long term.

Lenders benefited from these modifications as well. Lenders were able to secure the loans for borrowers facing immediate financial hardship but had the likelihood of maintaining their mortgage payments over their lifetime. This helped reduce the risk of foreclosure, and an expensive process for lenders. Most importantly, it helped families remain in their homes.

What Options Are Available Now?

A home modification program is still an option for some homeowners. Other programs are available to help some borrowers such as the Fannie Mae and Freddie Mac Flex Modification Program. Many lenders offer modifications in-house as well. Borrowers who may be late on monthly mortgage payments or are facing financial hardship should consider speaking to their lender directly.

Additionally, the Home Affordable Refinance Program, or HARP, is available. This option remains in place and can help a homeowner to secure a lower interest rate on their loan, get into a shorter loan term, or adjust their loan from an adjustable-rate to a fixed rate.

Individuals facing financial hardship should seek out solutions from lenders. While the HAMP program is no longer accessible, other solutions may be available to help borrowers to avoid foreclosure, late payments, or even the loss of their home.

Read Also:

Content Rally

Content Rally wrapped around an online publication where you can publish your own intellectuals. It is a publishing platform designed to make great stories by content creators. This is your era, your place to be online. So come forward share your views, thoughts and ideas via Content Rally.

View all posts

A Helpful Guide To Franked Dividends In Australia

If you are an investor in Australia, it's likely you have come across the term "franked dividends." But what exactly are franked dividends, and why are they important to understand? This article will provide a comprehensive guide to franked dividends, including what they are, how they work, and why they can be a valuable addition to your investment portfolio. What is a Franked Dividend? You may be wondering, “what is a franked dividend?”A franked dividend is a type of dividend payment made by an Australian company that has already paid corporate tax on its profits. The term "franking" refers to the process of crediting the tax already paid to the shareholder who receives the dividend. The Australian tax system allows companies to pass on the benefit of the tax they have already paid to shareholders through franked dividends. This means that shareholders receive the full value of the dividend, as well as a tax credit for the amount of corporate tax paid by the company. The tax credit can be used to offset the shareholder's own tax liability, reducing their overall tax bill. How Franked Dividends Work To understand how franked dividends work, it's important to understand the basic structure of the Australian tax system. Companies in Australia pay corporate tax on their profits at the rate of 30%. When a company declares a franked dividend, it passes on some of these profits to shareholders, along with a tax credit. The tax credit is calculated as the amount of corporate tax paid by the company, divided by the number of shares outstanding. For example, if a company pays $100 in corporate tax and has 1 million shares outstanding, each shareholder would receive a tax credit of $0.10 per share. Shareholders can then use the tax credit to offset their own tax liability. If the shareholder's marginal tax rate is less than 30%, they will receive a cash refund for the difference. For example, if the shareholder's marginal tax rate is 20%, they would receive a cash refund of $0.10 for every $0.50 of franked dividends received. Why Franked Dividends are Important Franked dividends can provide several benefits to investors, including: Increased income: Franked dividends provide shareholders with a higher level of income compared to unfranked dividends, as the tax credit increases the overall value of the dividend. Tax benefits: As mentioned, shareholders can use the tax credit from franked dividends to offset their own tax liability, reducing their overall tax bill. Lower risk: Companies that pay franked dividends are typically well established, with a proven track record of profitability. This makes them a lower-risk investment compared to companies that do not pay dividends. Diversification: Adding franked dividend-paying stocks to your investment portfolio can provide diversification, as these stocks tend to come from different sectors and industries compared to other types of investments. Long-term growth: Companies that pay franked dividends are often focused on long-term growth, which can benefit investors in the form of capital appreciation and future dividend payments. Conclusion Franked dividends are a valuable component of the Australian tax system, providing investors with increased income, tax benefits, and diversification opportunities. By understanding how franked dividends work, you can make informed decisions about your investment portfolio and take advantage of the benefits they offer. Whether you are a seasoned investor or just starting out, franked dividends can be a valuable addition to your portfolio. Additional: Investing and Trading 101: Investment Ideas for Newbies How Many Jobs Are Available In Real Estate Investment Trusts? How Digital Advisors have Transformed the Investment Sector DiversyFund 5 Steps to Protect Your Portfolio in a Difficult Environment

Best Small Business Loans To Look Into In 2024– Are You Eligible For The Loan?

Planning to investigate some small business loans? What are the best options out there? Most importantly, how can these loan options help you? Contrary to popular belief, it is more complex than filling out a form and getting your loan approved. That too from the very first source! There is eligibility, which you must fulfill from your end, and criteria that the small business loan providers must ensure. These are subjective to individuals and the business they are trying to build. For example, which provider should you go for when you need a quick loan of a larger or smaller amount? So, without any further ado, let’s get into the blog post What Are Small Business Loans? What are exactly small business loans? The criteria? Is it different than other forms of business loans? Small business loans are classified under money lending for commercial purposes Like any other business loan. There are several reasons why you would consider lending. Do not worry if it is for operational expenses and you fall short! Not everyone accesses such loans just for their initial business investment or to extend their business to new grounds. In fact, it is common for people to underestimate their expenditure margin when they are starting their business. In fact, in 2020, 56% of all small business loans were to manage operational costs. While only 31% of loans were for expansion opportunities.1 The Best Small Business Loans Here are the best small business loans to investigate: 1. SBA 7(a) Loan LoanCredit ScoreMinimum YearsMinimum Revenue (Yearly)Maximum Loan AmountTime of Acceptance SBA 7(a) Loan680+Two years$100,000+$5 million5-10 business days This government-backed loan program offers competitive rates and long terms for various needs. Pros: Low interest rates Long repayment terms Cons: Lengthy application process Strict qualification criteria 2. Kabbage Business Line Of Credit LoanCredit ScoreMinimum YearsMinimum Revenue (Yearly)Maximum Loan AmountTime of AcceptanceKabbage Business Line of Credit640+1 year$50,000+$250,000 Same day This is a revolving line of credit with a quick application process for managing cash flow. Pros: Fast funding Flexible access to funds Cons: High APR Limited revolving credit line (although that is how they advertise). 3. OnDeck Term Loan LoanCredit ScoreMinimum YearsMinimum Revenue (Yearly)Maximum Loan AmountTime of AcceptanceOnDeck Term Loan600+1 year$100,000+$250,000 24 hours This loan offers short-term loans with quick approval, which is ideal for fast access to capital. Pros Fast Funding Discounts for repeat customers Cons High interest rates Frequent repayments 4. BlueVine Business Line Of Credit LoanCredit ScoreMinimum YearsMinimum Revenue (Yearly)Maximum Loan AmountTime of AcceptanceBlueVine Business Line of Credit600+Six months$100,000+$250,000 24-72 hours Flexible line of credit with fast approval, useful for managing cash flow. Pros Quick funding No early repayment fees. Cons Higher rates for lower credit scores. Limited to revolving credit. 5. Fundbox Line Of Credit LoanCredit ScoreMinimum YearsMinimum Revenue (Yearly)Maximum Loan AmountTime of AcceptanceFundbox Line of Credit600+Six months$50,000+$150,000 As fast as the next business day It provides a simple, quick line of credit ideal for immediate cash flow needs. Pros Easy qualification Quick access to funds Cons Lower Loan Amounts Shorter Repayment terms 6. Lendio Loan Marketplace LoanCredit ScoreMinimum YearsMinimum Revenue (Yearly)Maximum Loan AmountTime of AcceptanceLendio Loan Marketplace550+Six months$50,000+$5 million On the loan amount This type of loan is a great help to small business owners. Rather than just one loan, this is a marketplace that connects businesses with multiple lenders for various loan types. Pros Wide range of loan options. Easy comparison of the offer. Cons Can receive multiple calls from lenders, which can be irritating. Not all lenders have favorable terms. 7. American Express Business Loan LoanCredit ScoreMinimum YearsMinimum Revenue (Yearly)Maximum Loan AmountTime of AcceptanceAmerican Express Business Loan660+1 yearNot specified$50,000 3-5 days This fixed-rate loan is available only to pre-approved American Express Business Card members. Pros Fixed rates No origination fee Cons Only available to pre-approved members. Relatively small maximum loan amount. Therefore, if you plan to get a small business loan in the foreseeable future, getting an American Express Business Card is better. 8. Accion Opportunity Fund LoanCredit ScoreMinimum YearsMinimum Revenue (Yearly)Maximum Loan AmountTime of AcceptanceAccion Opportunity Fund550+1 yearNot specified$250,000 1-3 weeks Offers loans to underserved small business owners, including minorities and women. Pros Focus on underserved businesses. Personalized support Cons Longer approval process. It may have a higher interest rate. 9. Credibly Small Business Loan LoanCredit ScoreMinimum YearsMinimum Revenue (Yearly)Maximum Loan AmountTime of AcceptanceCredibly Small Business Loan500+Six months$15,000/month$400,000 24-48 hours (about two days) Provides working capital loans and merchant cash advances with flexible terms. Pros Fast funding Flexible repayment options Cons Higher cost of financing. Frequent repayments Small Business Loans With Separate Criterions Now, we will be delving into the different criteria and which small business loan provider would be best! 1. Startup Needing Initial Capital "I just started my business and need funds to get it. What are my options?" Best Loan: Fundera by NerdWallet Offers access to multiple loan options, including startup loans, even with lower credit scores and minimal business history. 2. Expanding An Established Business "I’ve been in business for two years and want to expand. What loan should I consider?" Best Loan: SBA 7(a) Loan Ideal for established businesses needing significant funding for expansion, with favorable terms and interest rates. 3. Need For Quick Cash Flow Solutions "I need quick access to cash to manage cash flow. What’s the fastest option?" Best Loan: Kabbage Business Line of Credit Offers quick application and approval processes, with funds available on the same day for urgent cash flow needs. 4. Managing Seasonal Inventory And Expenses "My business is seasonal, and I need funds to purchase inventory before the busy season. What loan fits this need?" Best Loan: OnDeck Term Loan It provides short-term loans with quick funding, ideal for managing seasonal inventory purchases and expenses. 5. New Business Owner With Limited Credit "I have a low credit score and a new business. Are there any loan options available for me?" Best Loan: Credibly Small Business Loan Accepts lower credit scores and offers working capital loans, making it accessible to newer businesses with limited credit. 6. Needing A Flexible Line Of Credit "I want a flexible financing option. This is to cover unexpected expenses as they arise. What should I look for?" Best Loan: BlueVine Business Line of Credit It offers a flexible line of credit with fast approval. Plus, it is suitable for covering unexpected expenses. 7. Seeking Low Interest Rates And Long Terms "I’m looking for a loan with low interest rates and long repayment terms. What’s the best choice?" Best Loan: SBA 7(a) Loan It is known for its low interest rates and long repayment terms. Therefore, it is ideal for businesses seeking cost-effective funding. 8. Socially Responsible Business Owner "I want to support a loan provider that helps underserved communities. What are my options?" Best Loan: Accion Opportunity Fund Focuses on providing loans to underserved small business owners. In fact, it also includes minorities and women, with personalized support. 9. Looking For A Fast And Easy Application Process "I need a loan. However, I don't want to go through a long application process. Which loan is easy to apply for?" Best Loan: Fundbox Line of Credit Offers a simple, quick application process with funds available before the next business day. 10. Needing A Small, Short-Term Loan "I need a small amount of money quickly for a short-term need. What’s the best option?" Best Loan: American Express Business Loan It provides small, fixed-rate loans with a quick approval process, which is ideal for short-term financial needs. Related: How To Use An SBA Loan For Business Purchase Eligibility For Small Business Loans You might find the best loan provider. However, when it comes to eligibility, rejection can be common. Regarding personal loans, good mortgage lending (a property that you place as collateral when taking the loan) makes loan acceptance easier. However, when it comes to business loans, the rules are a little different. The loan lender (bank or private) must closely investigate your business expenditure, cash flow, and profit margin. If you do not have a steady personal and business credit score (unless you are building your business from scratch, in which case the rules will be different), getting your small business loan approved can be challenging. Do not worry; this is not to scare you. However, ensure you take the time to investigate your and improve financial health. Here are some of the absolute eligibilities when it comes to small business loans. 1. Your Business Needs To Be Nonprofit Unfortunately, you cannot have a nonprofit organization and demand a small business loan. Your business must be making some profit through a steady income. 2. A Lucrative Business Idea, Aka The Cash-Flow Since business loans do not depend on collateral submission, lenders are mostly concerned about the business idea. Most importantly, is there a demand for such business in the market? Will there be enough opportunities to build a steady cash flow? Is there any stock market share for businesses with the same ideation? The loan they offer you will depend on the potential profit you can make from that base. Plus, it must be backed by solid data. 3. Your Credit Score Although we have already mentioned the credit score for each loan provider, you need to be serious about your creditworthiness. Any loan provider will scrutinize your personal and business credit score. Any suspicious activity (including something as simple as an unpaid credit card bill) can put you under the radar. Eventually, it does not make you a good candidate for a loan. In other cases, your business credit score also plays a crucial role. What is your total business income? Is it holistic with your business expenditure? What is your business credit card transaction history? Are you able to balance your bills alongside your monthly operational costs? ...and many more. You must submit all your financial documents, especially if you are planning to expand through different business locations and real estate. How your business funds are handled becomes crucial in such a case. Secured & Unsecured Loan Starting a business? Want a small business loan? Then, you should understand the importance of collateral in such a business. Most importantly, do you even need to submit collateral to get your loan sanctioned? Secure business loans will charge you some collateral (cash money, real estate property, gold bonds, etc.). Meanwhile, unsecured loans do not charge any collateral. Which is better as Small Business Loans As someone just starting a business, I know the advantages/disadvantages of both kinds of loans will depend on your criteria and loan amount. So, let’s discuss the overall pros and cons of both! Secured Loans Let’s begin with the kind of loans that require collateral. Pros ConsLower Interest RatesLonger Approval RatesHigher Loan Amounts (because of the collateral)Risk of Losing AssetLonger Repayment Period (you can elongate your loan repayment term for two decades)Not everything can be collateral. It, after, depends on the bank. Unsecured Loans Now, let’s talk about loans without collateral. ProsConsYou Need No CollateralAutomatically, the maximum loan amount is less.Quick Loan ApprovalHigher Interest RatesFlexible for all types of loansThe repayment period is a short When Should You Get What? For the ease of your own understanding, here is when you should get what! Secured Loans Might Be Better If You need a larger loan amount. Can provide valuable collateral. You want lower interest rates and longer repayment terms. If your business has significant assets that can be used as collateral. Unsecured Loans Might Be Better If You do not have assets to offer as collateral. Need funds quickly. You prefer not to risk losing business or personal assets. The business needs a smaller loan amount. You can check the listicle above for a good idea of which secure/unsecured small business loans would be better for you. Types Of Small Business Loans These are the types of small business loans which you should investigate: Term Loans: You borrow a set amount and pay it back over time with fixed payments. SBA Loans: The government backs these loans, giving you good terms for your business. Business Lines of Credit: You get access to a credit line like a credit card. Invoice Financing: You can get cash based on your unpaid invoices. Equipment Loans: This loan helps you buy business equipment. Merchant Cash Advances: You get an advance on your future credit card sales. Microloans: These small loans are often given by nonprofits to help you start. Commercial Real Estate Loans: Use these loans to buy or fix up your business property. Personal Loans for Business: You can use your personal credit for business needs. Franchise Loans: These loans help you start or grow a franchise business. The Final Note! The choice between a secured and an unsecured small business loan ultimately depends on your specific needs and circumstances. a secured loan might be more suitable If you have valuable assets and prefer lower interest rates. On the other hand, if you need quick access to funds and prefer not to put up collateral, an unsecured loan could be the better option. Always consider the terms and conditions carefully and consult a financial advisor to make the best decision for your business. Things to remember before you get a small business loan: Have a solid, chalked-out plan for how you will repay it. You wouldn’t want to lose your collateral. Do not take hasty loans because you have fulfilled a business milestone. Remember, a loan is not a temporary fix; it is a debt for years to come. Therefore, be careful before sanctioning a loan. Finally, be candid about your financial decision. Keeping it discreet to get a quicker loan approval will only cause you trouble later. What do you think? Should getting a small business loan come after so many considerations, or should it be a little easier? Do let us know in the comment section below! Read Also: Core Banking Solutions: A Game Changer? Alternative Business Financing – What Is It And How Do You Do It? Ways To Apply For A Personal Loan & The Reasons To Opt For This Loan.

6 Vital Reasons Why You Need A Financial Advisor

Having a financial advisor is one thing that can help you manage your finances and make the right business decisions. Many are times when we make financial decisions; we end up messing hence the need for someone who can help us. Here are the essential reasons why you need a financial advisor. 1. Financial Training: Most of us do not even have a rough idea on why we need to manage our finances and the in and see it of our investments hence the need for us to undergo through some financial training. Most financial advisor Atlanta GA will first start by training you on what finance is all about. Such financial training is vital for it will open you up to the field of finance hence empowering you with business knowledge that is essential even when the financial advisor is not available. 2. Gain from the Financial Advisor's Experience: Many financial advisors have helped so many people manage their finances hence they know the best ways to manage personal finances and get fruitful results. With a financial advisor, you can tap into their commercial experience and exposure. This enables you to learn better ways of handling your finances. Such disclosure will help you wisely do your financial dealings, avoiding financial pitfalls that have trapped many. 3. Get Financial Advise: A good financial advisor is knowledgeable and knows the various elements of the financial industry; hence, can offer you helpful financial advice. With a financial advisor Atlanta GA, you get to know the best places to invest in. Also, the financial planner can show you the various industries that are risky and the ones that are not risky, helping you not to invest blindly. 4. Offering You Tax Advise: Taxation is one key topic that has remained misunderstood by many, yet it has a significant impact on our finances. By working with a financial advisor, you will get advice on how to manage your tax liability, making you avoid pursuits from the taxman and their associated penalties. With proper tax management, you can even make some tax savings that will help you get some extra money that you can use elsewhere. 5. Research: Most financial advisors will do intensive research regarding the various fields of finances. By working with such financial advisors, you will get to benefit from their study making you understand the area of funds. You will, therefore, avoid making the wrong financial decisions. 6. Receive Investment Advise: A good financial advisor will teach you about Investments and advise you on what industries you should consider investing. With such knowledge, you will invest in Investments that will give you returns and not cause you to suffer losses. By investing right, you will get good performances that will lead to a significant increase in your income, the desire of everybody. 7. Leads to Your Financial Growth: Economic growth comes as a result of knowing what you should invest in, how to manage your outflows, and how to manage your inflows. Working with a financial advisor will expose you to all these areas. You will, therefore, grow financially and you can, as a result, make wise financial decisions. Conclusion: Having a financial advisor in your economic life is of great benefit. You will grow financially and get to know how to make wise Investments decisions. You need to get yourself a financial advisor. Read Also: DiversyFund Details 5 Steps To Protect Your Portfolio In A Difficult Environment Getting Your Personal Finances In Order With A Proper Budget Strategy How Digital Advisors Have Transformed The Investment Sector

When Is The HAMP Program Beneficial To You?

Is HAMP Program Available?

What Did the Home Affordability Mortgage Program Do?

Who Was Eligible for HAMP?

Why Did Borrowers Consider HAMP?

What Options Are Available Now?

How To Choose The Best Auto Insurance Company?

UAN Login and its facilities with Registration process

Content Rally

Content Rally wrapped around an online publication where you can publish your own intellectuals. It is a publishing platform designed to make great stories by content creators. This is your era, your place to be online. So come forward share your views, thoughts and ideas via Content Rally.

Leave a Reply

Popular

Technologies For Creating A Startup Idea

How to Download Facebook Videos on Android?

7 Rules of Effective Ecommerce Web Design

The 10 WordPress Plugins Every Sucessful Blogger Uses

Follow Us

Recent

How to Choose a Gift That Matches Their Personality Perfectly

Discover the Best Carrier Oils for Hair & Skin

How Modern Technology is Transforming Dental Care Solutions

What to Expect from Upcoming IPOs in the Next Quarter

Related

A Helpful Guide To Franked Dividends In Australia

Best Small Business Loans To Look Into In 2024– Are You Eligible For The Loan?

6 Vital Reasons Why You Need A Financial Advisor

When Is The HAMP Program Beneficial To You?

Is HAMP Program Available?

What Did the Home Affordability Mortgage Program Do?

Who Was Eligible for HAMP?

Why Did Borrowers Consider HAMP?

What Options Are Available Now?

Share this Article

How To Choose The Best Auto Insurance Company?

UAN Login and its facilities with Registration process

Content Rally wrapped around an online publication where you can publish your own intellectuals. It is a publishing platform designed to make great stories by content creators. This is your era, your place to be online. So come forward share your views, thoughts and ideas via Content Rally.

Leave a Reply

Popular

Follow Us

Recent

Related