Homeowners Assistance Program (HAP) is Working for Military Families


In January five of my military client’s closed on the sale of their homes using the Department of Defense (D0D)-Homeowners Assistance Program (HAP). Yes if it is a military related program it is going to be full of acronyms.

For many military families in the Northern Virginia area there is no doubt that the stress of a PCS move alone is high. Add the possibility of facing a short sale and the stress can go off the scale. Fortunately as part of the Economic Stimulus Relief Act military families who were under contract to purchase a home prior to July 1, 2006, have PCS orders prior to September 1, 2010 and have lost at least 10% of the market value of their home can apply for HAP benefits.

The program offers military sellers a chance to move without having to go through the painful process of a short sale and the possibility of ruining their credit. This is huge for anyone with a security clearance and with military families where moving every three or four years means credit checks for new housing (either buying or renting) ruined credit could be devastating.

For more program information you can go to the USACE HAP website.

If you are a military family living in Northern Virginia and meet the qualification for the USACE HAP program give me a call at 703-346-2213. I’ve settled HAP transactions and have more under contract. I understand the process, the lingo and know what it takes to get your Northern Virginia home SOLD.

119 thoughts on “Homeowners Assistance Program (HAP) is Working for Military Families

  1. Tray-the formula you show is for the Private Augmented sale. Is this the route you are taking? Your net amount will have the 10% taken out.

  2. Cindy,
    Thanks for offering your support to so many military folks. Quick question: Does the cost of improvements go into the intial purcase price. For example: We purchased our home for $425 and subsequently upgraded the kitchen and floors to the tune of about $50K. In the formula, do we start @ the $425 purchase price or the $475 upgraded price?


  3. Chas,

    Yes you can add the cost of improvements into the purchase price to reach your Prior Fair Market Value (PFMV)

  4. What about the 1000’s who closed after 2006? I myself closed in 2008 and I am at least 100K under and when I PCS here soon I am sooooo screwed.

  5. I wish I had an answer and suggest that you contact your Congressman and Senator to support the proposed changes to the date for HAP eligibility.

  6. Just wanted to leave a quick note.

    First off, thank you Cindy. Because of your time and guidance, my wife and I were able to sell our Annapolis home through the HAP program. You were an incredible asset to have on our side!

    For everyone else, this program does work and covered nearly $115k loss that would have otherwise haunted or affected us for years. I feel terrible for those who do not make the date deadline – but as previously mentioned, please contact your local representatives and take it up the ladder – it’s your financial future and it’s worth fighting for.

    All the same, thank you all the same and we’d be more than happy to help others through the process as we were so lucky to have been guided. God Bless! Chad & Carole

  7. Chad-it was my pleasure to be able to lend a helping hand. Glad your transaction went smoothly and if you know of anyone else in the area that needs assistance I hope you will pass on my name.

  8. Do you have any insight on how one may be able to speed up the closing process with a HAP property? I put an offer on a property that was a HAP home and was told that it wouldn’t take long however it has been 5 months now and still no closing date. Thanks!!!

  9. What a load of $#@^! I’m with Brian on this one. I closed in 2007 and PCS’d in 2009. If this program was intended to help, they’d take the 2006 requirement off and open it to military member in trouble!

  10. Which region are you in? The Savannah office usually closes transactions in 90 days or less. I understand the West Coast has been backed up and processing has taken much longer.

  11. Patrick there have been bills introduced in Congress to try to extend the dates for eligibility for HAP. At this point they are still processing the thousands of files for service members who meet the current guidelines. Make sure you have written your member of Congress to let them know your frustration and to support HR 237. It is stalled due to lack of funding but the more those who are impacted by the market speak out the better.

  12. I know i’m a little late here but i’m stationed at fort dix, NJ and just got orders on a short notice to cali. I bought my home in 2008 and have little options. If anyone knows of any programs out there it would be a great help. Brian and Patrick have great points, if your going to help us then help us, no matter what date we bought the house.

  13. You may want to look at my latest post on the fact sheet from the White House last week. There are now options for servicemembers who purchased in 2008. It appears from my research this assistance should come directly from your lender. As of this date HAP has not been told they have additional funding or to change the dates for the HAP program.

  14. I’m confused about how HAP private sale works. If the orginal purchase price is $300K and you sell it for $150K, does HAP pick up 90% of the difference ($150K)? If so, the servicemember is responsible for the remaining 10% or $15K, right?

  15. The private sale option is generally used by servicemembers who made a significant down payment on their property. If the prior fair market value (PFMV) was $300,000 the HAP benefit is 90% of $300,000 or $270,000. The majority of servicemembers go the government acquisition route as their mortgage amount is higher than the 90% of PFMV.. If your mortgage amount is lower than the 90% of PFMV then the private sale may be an option to consider. You will need to discuss your numbers with a HAP Realty Specialist to determine which PCS HAP benefit works for your circumstances.

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