California’s new Mortgage Relief Program is set to assist homeowners in the Golden State who have fallen behind on monthly payments, and will provide qualifying residents with up to $80,000 in grant funding.
The program makes $1 billion in federal funding available to homeowners who encountered financial hardship due to COVID-19. The funds provided through the program also don’t need to be paid back, according to its FAQ page.
"We are committed to supporting those hit hardest by the pandemic, and that includes homeowners who have fallen behind on their housing payments," California Gov. Gavin Newsom said in a statement about the program. "No one should have to live in fear of losing the roof over their head, so we’re stepping up to support struggling homeowners to get them the resources they need to cover past-due mortgage payments."
If you are struggling to keep up with your monthly mortgage payments, consider refinancing your home while mortgage rates are low to save money. Visit Credible to find your personalized rate and see how much you could save.
California Mortgage Relief Program gets federal approval
The relief program – which received approval by the U.S. Department of the Treasury in December 2021 – will provide a one-time grant in the form of a direct payment to those who qualify. It’s estimated that funds from the program could be made available to between 20,000 and 40,000 homeowners. The funding for the program is drawn from President Joe Biden’s American Rescue Plan Act’s Homeowner Assistance Fund.
"During this pandemic, Californians have lost their jobs or had their paychecks cut, leading many to wonder how they can keep up with their housing payments," said Lourdes Castro Ramírez, California's Secretary of the Business, Consumer Services and Housing Agency. "This program will help families keep their homes and provide the stability they need to recover from the financial, physical and emotional toll caused by the pandemic."
If you are struggling to keep up with your mortgage payments, refinancing could help you save money on your monthly payments. Visit Credible to compare multiple mortgage lenders at once and choose the one with the best interest rate for you.
Who qualifies for the California Mortgage Relief Program?
Homeowners who meet the following eligibility requirements can utilize California Mortgage Relief, as per the program’s website:
- The household's income is at or below 100% of the county’s area median income
- The homeowner must own a single-family home, a condo or a permanently affixed manufactured home in California
- Have faced a COVID-19-related financial hardship after Jan. 21, 2020
The homeowner must also meet at least one of these following requirements:
- Be receiving public assistance
- Be severely housing burdened
- Have been denied alternative mortgage workout options by their mortgage servicer
"Homeowners who have had their mortgage payments paused during the pandemic are now facing the end of those forbearance periods," Tiena Johnson Hall, California Housing Finance Agency executive director, said. "The California Mortgage Relief Program will alleviate some of that anxiety and give eligible homeowners a chance to get caught up on those housing payments and regain that sense of security."
If you are struggling to pay your mortgage, refinancing could bring some relief by lowering your payments. Contact Credible to speak to a home loan expert and get all of your questions answered.
Have a finance-related question, but don't know who to ask? Email The Credible Money Expert at firstname.lastname@example.org and your question might be answered by Credible in our Money Expert column.