In today’s housing market, many homeowners have experienced a decrease in their home’s value. As a result, they now owe more on their mortgage in KC than what their property is worth. Thankfully, there are several options available to homeowner with mortgages in KC to help prevent their property from going underwater.

The best way to prevent your property from going underwater is to modify or refinance your loan for lower payments. If you are currently still up-to-date on your mortgage in KC but haven’t been able to get a traditional refinance because your home’s value has declined, you could be eligible for the:

Home Affordable Refinance Program

The Home Affordable Refinance program is designed to help homeowners who have been unable to get a traditional refinance on their mortgage in KC. Eligibility requirements include, but are not limited to::

Home Affordable Modification Program

The Home Affordable Modification Program was created to help homeowners overwhelmed by increases in expenses or decreased income. You may be able to take advantage of HAMP if:

  • You are struggling to make your mortgage payments because of a financial hardship
  • You are delinquent or in danger of falling behind on your mortgage
  • Your property has not been condemned
  • You owe up to $729,750 on your primary residence or one-to-four unit rental property

Principal Reduction Alternative

If your home is currently underwater, a Principal Reduction Alternative (PRA) may help you. A PRA helps borrowers with mortgages in KC by encouraging mortgage servicers and investors to reduce the amount they owe on their home. You may be eligible for a PRA if:

  • Your mortgage is not owned or guaranteed by Fannie Mae or Freddie Mac
  • You owe more than your home is worth
  • The property is your primary residence
  • Your mortgage payment is more than 31% of your pre-tax gross monthly income
  • You have a financial hardship and are either in danger of falling behind or already delinquent

Need Help Preventing Your Property From Going Underwater?
Call a Cornerstone Loan Officer Today

The above information is for educational purposes only. All information, loan programs and interest rates are subject to change without notice. All loans subject to underwriter approval. Terms and conditions apply. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction.