Does HAMP—or Another Modification Program—Apply to Rental or Investment Property?

If you have a rental or investment property, you might qualify for a mortgage modification, though not under HAMP anymore.

The Home Affordable Modification Program (HAMP), which was part of the government’s Making Home Affordable (MHA) initiative, provided modifications for investment properties, like rentals. While the HAMP program has ended, you might be able to modify the mortgage on your investment property through Fannie Mae’s or Freddie Mac’s Flex Modification program. Or you might qualify or a proprietary (in-house) modification or a refinance under the Home Affordable Refinance Program (HARP).

What’s an Investment Property?

An investment property is a property that is:

  • not your primary residence, and
  • is purchased or used in order to generate income, profit from appreciation, or to take advantage of certain tax benefits.

A rental property is a type of investment property. (Learn more about investment properties.)

HAMP: No Longer Available

HAMP, which was a federal loan modification program, assisted borrowers by modifying their first-lien mortgages—including mortgages on rental properties—so that the monthly payments were lower and more affordable. Unfortunately, HAMP is no longer accepting applications.

Fannie Mae and Freddie Mac Flex Modification Program

If you want to modify a mortgage on an investment property and you have a Fannie Mae or Freddie Mac loan, you might be eligible for a Flex Modification. (Go to www.fanniemae.com/loanlookup and www.freddiemac.com/mymortgage to find out if Fannie Mae or Freddie Mac owns your loan.)

For an investment property to qualify for the program, you must be 60 or more days delinquent on payments and meet other eligibility requirements. The requirements to get this type modification are rather extensive and complicated, so call your loan servicer to find out if you qualify and to learn how to apply.

Proprietary Modifications

In addition, “proprietary” (in-house) modifications are sometimes available for investment properties. Call your mortgage servicer to find out if a modification might be available in your circumstances.

Another Option: Refinance Through HARP

While most programs under the MHA initiative have ended, the Home Affordable Refinance Program (HARP) is scheduled to last until December 31, 2018. HARP is a mortgage refinance option. With HARP, if Fannie Mae or Freddie Mac owns your loan, you might be able to:

  • get a lower interest rate on your mortgage loan
  • get a shorter loan term, and/or
  • change from an adjustable to fixed-rate mortgage.

One- to four-unit investment properties are eligible for HARP.

Again, eligibility requirements for HARP are complicated, so call your loan servicer to find out if you qualify or go to https://harp.gov for more information.

Getting Help

If you’re struggling with your mortgage payment and want to learn more about any of the options discussed in this article, contact your mortgage servicer or a HUD-approved housing counselor at 888-995-HOPE (4673) as soon as possible.

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