Mortgage Help for the Unemployed on the Way

The Obama Administration said that through the existing Housing Finance Agency Innovation Fund for the Hardest Hit Housing Markets, the US Treasury will make $2 billion of additional assistance available to housing finance agencies in 17 states to implement local programs for unemployed homeowners struggling to make their mortgage payments.  Yesterday the US Treasury Dept added $476.2 million to a $64 million state program.  California received the largest share of the $2 billion awarded.

 California Housing Finance Agency “CalHFA” will be the administrator of this program as the state’s affordable housing bank.  In the capital region, unemployment has soared to 12.4 percent and the State of California has more than 42,000 laid off homeowners. 

Beginning on November 1, 2010, the government will help those QUALIFIED individuals help make their mortgage payments (up to $1,500 month) while they look for another job.   They aim to help 19,000 make a few months of mortgage payments between November and next July and 23,000 will receive help in the next two years.

 Qualifications for this program:

  • Homeowners must be out of work
  • Eligible for unemployment benefits
  • Live in the home tied to the problem
  • They must be FEWER than 90 days behind on mortgage
  • Meet LOW & MODERATE income guidelines (generally less than $70,000 for couples in El Dorado, Sacramento & Placer counties
  • EXCEPTION:  Loan must be purchase money mortgage and NOT a refinance

To find out additional information at the KEEP YOUR HOME website at http://www.keepyourhomecalifornia.com/ or call (916) 373-2585.

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