What is the Hope for Homeowner's Act?

This is a new program for borrowers at risk of default and foreclosure. The program provides new, 30-year, fixed rate mortgages that are insured by the Federal Housing Administration (FHA). It may help you refinance your mortgage into a more affordable payment. Participation in the Hope for Homeowner's Act is voluntary. Both lender(s) and borrower(s) must agree to participate.

Who is eligible for the Hope for Homeowner's Act program?

You should contact your lender to determine eligibility, but you may be eligible if, among other factors:


  • The home is your primary residence, and you have no ownership interest in any other residential property, such as second homes;
  • Your existing mortgage was originated on or before January 1, 2008 and you have made at least six payments;
  • You are not able to pay your existing mortgage without help;
  • As of March 2008, your total monthly mortgage payments due were more than 31 percent of your gross monthly income;
  • You certify that you have not been convicted of fraud in the past 10 years, intentionally defaulted on debts; and did not knowingly or willingly provide material false information to obtain existing mortgage(s).

Who can help me apply for the Hope for Homeowner's Act program?

The FHA does not accept loan applications for the Hope for Homeowner's Act program directly. Borrowers seeking help should contact their lender, another FHA-approved lender, a housing counselor, or an attorney to apply or learn more about their options.

What costs are associated with a new mortgage under the Hope for Homeowner's Act?

If you are approved for a new mortgage under the Hope for Homeowner's act, the new mortgage will replace all of the current mortgages on your home. You will not owe any payments, fees or debts on mortgages you now hold.  However, you must agree to share both the equity created at the beginning of this new mortgage and a portion of any future appreciation in the value of your home.  In addition to an upfront mortgage insurance payment of 3%, you will pay a 1.5% annual mortgage insurance premium on your outstanding mortgage balance. This premium will be included in your monthly payments.  Finally, you will need to pay closing costs on the loan. You will receive a Good Faith Estimate of these costs.

How much can I borrow under the Hope for Homeowner's Act?

If you are approved for a H4H mortgage, your new mortgage will be no more than 90% of the new appraised value of your home with the lender essentially writing down your current mortgage to that amount.

If I refinance under the Hope for Homeowner's Act, can I take out a second mortgage later?

You cannot take out a second mortgage for the first five years of the loan, except under certain circumstances for emergency repairs.

What is the interest rate on a new Hope for Homeowner's Act mortgage?

The interest rate for the new mortgage will be based on current market interest rates and will be provided by the lender.

How long does it take to apply for a Hope for Homeowner's Act mortgage?

Processing time will vary, but usually takes approximately 60 days. Consult your lender when you apply.

Is there an income restriction to get a Hope for Homeowner's Act mortgage?

There isn't an income restriction, but you will need to demonstrate that you have sufficient, steady income to make the new H4H mortgage payments.

Can I still get a Hope for Homeowner's Program mortgage if I'm already in foreclosure?

If your lender has started already started foreclosure proceedings, you may still be able to obtain a Hope for Homeowner’s Act loan, though it depends somewhat on which stage of the foreclosure process you are in.  Talk to your lender immediately for more detailed information. 

The information on this page is meant to provide a general overview of the law. The laws in your state and/or city may deviate significantly from those described here. If you have specific questions related to your situation you should speak with a local attorney.

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