Can I Qualify for a Loan Modificaiton Without A Job?

As a follow-up to NPR's story about homeowners struggling to navigate their way through the Making Home Affordable program, a listener wrote to NPR asking whether people whose only income is unemployment benefits are still eligible to be considered for a loan modification under the program. There seems to be some confusion among lenders and housing counselors on this point. Chana Joffe-Wolt, an NPR reporter, ran it by the Treasury Department's point person for the program, who said, yes. Here's the full answer:

As of now, unemployment must continue for nine months to be counted, but we are consistently reviewing requirements. People on unemployment are eligible, and people on unemployment have gotten loan modifications.

There are a number of different parameters for eligibility (can be found on MHA website), so I can't comment on why this couple in particular is having difficulty. The administration is committed to keeping families in their homes and we are exploring ways to reach as many in need of assistance as possible.

This is consistent with the program guidelines issued by Fannie Mae, the entity designated by Treasury as the Financial Agent for the program. Under the heading "Verifying Borrower Income and Occupancy Status," the guidelines provide:

If the borrower receives public assistance or collects unemployment:

Acceptable documentation includes letters, exhibits or a benefits statement from the provider that states the amount, frequency, and duration of the benefit. The servicer must determine that the income will continue for at least nine months.