Principal Reduction Alternative - PRA

A Principal Reduction Alternative (PRA) helps homeowner’s with a property value has fallen causing them to no longer to qualify for a traditional mortgage. PRA mortgages are part of the Home Affordable Modification Program (HAMP)and were developed to help borrowers with mortgages that are owned primarily by the bank out right.

Qualifying for the Principal Reduction Alternative program(PRA):
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  • The mortgage is not owned by Fannie Mae, Ginnie Mae, or Freddie Mac.
  • You obtained your mortgage on or before January 1, 2009.
  • Your current mortgage must exceed 31% of your gross income.
  • The mortgage must meet conventional loan limits
  • You must be a distressed homeowner.
  • The Home must be your primary residence.
  • Your income must show you have the ability to make the new payments.
  • You must be in compliance with the Dodd-Frank Act.
  • Your mortgage exceeds the current value of your home,

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