A government loan modification involves changing the terms of a mortgage that is backed by a government agency, such as the Federal Housing Administration (FHA), the Department of Veterans Affairs (VA), or the U.S. Department of Agriculture (USDA). This can be done to make the loan more affordable for the borrower, typically by reducing the interest rate or extending the repayment period. Government loan modifications are available to homeowners who are experiencing financial hardship, such as those who have lost their job, had a medical emergency, or faced other unexpected expenses.
There are many benefits to obtaining a government loan modification, including: