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What's the Benefit of the "Housing Affordability Fund Mortgage Protection Program"?

By
Real Estate Agent with OC Residential

In addition to the enticing benefit to purchase San Clemente real estate with the $8,000 tax credit for first-time homebuyers (i.e. have not owned in the past three years), the California Association of Realtors recently launched a new program to help ease the nerves of first-time homebuyers who are afraid they may lose their job and be unable to pay their mortgage after they purchase a home.  The program, known as the Housing Affordability Fund Mortgage Protection Program, allows first-time homebuyers who lose their job due to a layoff to receive $1500 per month for up to six months towards their monthly mortgage payment.  In addition, a qualified co-buyer can also participate in the event of being laid off and receive an additional $750 per month.  So if you and your co-buyer both lose your jobs, you could receive up to $2250 per month for up to six months to help pay for your mortgage.  This is a significant supplement on top of severance and/or unemployment benefits to help you get through such a difficult event.  In addition to these benefits, this new program also includes a benefit of $10,000 in the event of dealth and coverage in the event of a disability. 

In order to qualify for the Mortgage Protection Program, you must:

  • Be a first-time homebuyer (i.e. someone who has not owned in the past three years)
  • Use a California Realtor in the transaction
  • Purchase the property in California after April 2, 2009 and close the transaction before December 31, 2009 (i.e. go into escrow no later than November 15 in the event a 30 day escrow is delayed)
  • Be an employee that receives a W-2 (self-employed and military unfortunately do not qualify; though military qualifies for a VA loan)

If you are a first-time homebuyers and would like to take advantage of this new program in addition to the $8,000 tax credit offered this year and interest rates at or near all-time lows, please contact us and we will gladly assist you in starting the process by providing you the program's application.