The California Association of Realtors (CAR) has launched a new program that will assist first-time home buyers who suffer job losses as a result of layoffs.
Through the Housing Affordability Fund Mortgage Protection Program, first-time home buyers who are laid off may be eligible to receive up to $1,500 per month, for six months, to help make their mortgage payments. A qualified co-buyer also can participate in the program and receive a monthly benefit of $750 per month for up to six months. Program benefits also include coverage for accidental disability and a $10,000 death benefit.
CAR's Housing Affordability Fund is dedicating $1 million toward its Mortgage Protection Program, and estimates that as many as 3,000 families will benefit from the program this year.
"The Mortgage Protection Program was developed to help ease the anxiety of consumers who are concerned about potential job loss and its impact on their ability to pay their mortgage should they purchase a home," said CAR President James Liptak. "It also provides peace of mind to those buyers who are actively searching for a home."
To qualify for the Mortgage Protection Program, applicants must be a first-time home buyer or someone who has not owned a home in three or more years, open escrow after April 2 and close on or before Dec. 21, use a California Realtor in the transaction, purchase a property in the state and be a W-2 employee (i.e., not self-employed).