Millions of homeowners will receive assistance with their now difficult mortgage payments through the Home Stimulus Package. Through this program, the government pays approved banks and lenders a $1,000 incentive to rewrite mortgages to lower the monthly payment for homeowners who are struggling to keep their home. These rewritten mortgages can use lower interest rates, longer terms, or even reduced principal to achieve the lower payment.

Homeowners across the United States are suffering due to the economic conditions; plant closings nationwide have caused people to have to settle for jobs in other sectors that don't pay what they have been accustomed to making. This has resulted in many homes being foreclosed due to payments that are impossible for people to make on their adjusted salaries. This is financial hardship, and it is one of the requirements for applying to obtain a loan modification in this program. All information submitted to the lender concerning this financial situation must be documented with the appropriate paperwork.

You also need to show that you can make the payment you receive with the new mortgage. This needs to be done in the same manner, with all information documented. There are other criteria for applying. The following are among the more important: the Loan needs to be with an approved lender, written before January 1, 2009, and not for more than $729,750. It also has to be backed by Fannie Mae or Freddie Mac.

You should do all your homework; learn the application qualifications, and what you need to do to apply. Have every detail worked out and double-checked before you contact your lender to increase your chances of success. The program is arranged to only allow you to apply one time. So, you need to be sure you have everything perfectly completed beforehand.