Question on 31% rule

[jer2008]

We have a jumbo loan that is over the HAMP requirement (850,000)

With Citimortgage is the 31% rule set in stone? If our loan was dropped to 5% we can stay in our house, but it would equal 35%. To get us to 31% we would need to be closer to 2% - which doesn't seem to happen much with jumbo loans.

Thanks

[Evan Bedard]

Hi jer2008,

With Citimortgage is the 31% rule set in stone? If our loan was dropped to 5% we can stay in our house, but it would equal 35%. To get us to 31% we would need to be closer to 2% - which doesn't seem to happen much with jumbo loans.

The 31% requirement only has to do with loans that qualify for the HAMP or MHA programs.. You should not request a HAMP program since you have a jumbo mortgage. I suggest you request a regular modification that does not deal with the new gov't programs. Honestly I believe that a regular modification is much better than the HAMP program. Most people are just offered a trial period with no final solution once the period is over...