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.
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