Making Home Affordable (MHA)
What is Making Home Affordable (MHA)?
The idea behind Making Home Affordable is to stabilize the. A major contributor to the financial crisis of 2008 was a large number of on home , which created crises for and financial institutions that had created mortgage-backed securities based on expected timely payments. By helping homeowners avoid , the Making Home Affordable is intended to avoid a recurrence of a financial crisis.
How Does Making Home Affordable (MHA) Work?
The Making Home Affordable program is actually a collection of several programs:
- Home Affordable Modification Program (HAMP)
- Reduction Alternative SM (PRA)
- Second Modification Program (2MP)
- FHA Home Affordable Modification Program (FHA-HAMP)
- USDA’s Special Servicing
- Veterans Affairs Home Affordable Modification (VA-HAMP)
- Home Affordable Alternatives Program (HAFA)
- Second Modification Program for Federal Housing Administration (FHA-2LP)
- Home Affordable Refinance Program (HARP)
- FHA Refinance for Borrowers with (FHA Short Refinance)
- Home Affordable Program (UP)
- Hardest Hit (HHF)
These programs have a variety of qualification guidelines and requirements, but in general they seek to lower homeowners' monthly loan payments, lower the interest rate on homeowners' mortgages, and help homeowners adjust the principal balances on their mortgages if necessary.
Why Does Making Home Affordable (MHA) Matter?
Making Home Affordable is a government program designed to help homeowners avoid