Homeowners who have fallen behind on their housing payments during the COVID-19 pandemic can apply for the California Mortgage Relief Program, which now accepts applications online.
The California Mortgage Assistance Program aims to help up to 40,000 residents with funds set aside for homeowners in socially disadvantaged and underserved communities that are often the hardest hit by the pandemic.
Those who are eligible may qualify for a maximum of $ 80,000 per household, with a direct payment to qualified homeowners mortgage servicers. It will not be necessary to repay a grant.
A total of $ 1 billion in funding for the program is allocated through President Biden’s American Rescue Plan Act Homeowner Assistance Fund. California’s program was approved by the United States Department of the Treasury to assist homeowners who have faced financial difficulties related to the pandemic between January 21, 2020 and December 27, 2021.
“No one should have to live in fear of losing the roof of their head, which is why we are helping struggling homeowners get the resources they need to cover past-due mortgage payments. Our Housing is Key program has already provided tenants and landlords with the assistance and resources they need to stay afloat. Now, with our California Mortgage Relief Program, we are extending that relief to homeowners, “Governor Gavin Newsom said in a news release.
Who is eligible?
According to the program’s website, California has a number of requirements that applicants must meet in order to receive program funds, including home ownership, maximum income, and financial hardship related to the COVID-19 pandemic.
Applicants must meet all of the following requirements:
- Household income is equal to or less than 100% of your county area median income;
- Own a single-family home, condominium, or permanently located manufactured home in California; Y
- Having faced financial difficulties related to the pandemic after January 21, 2020.
And meet at least one of the following:
- Receive public assistance;
- Severely distressed housing;
- Your mortgage servicer has denied you an alternative mortgage repair option
Homeowners seeking help can request it by visiting their website at CaMortgageRelief.org. A series of questions will be asked on the application to establish eligibility for aid funds and it will be evaluated. If the applicant qualifies based on the information provided, the application will be available.
Documentation related to household income and house payments may be required during the process. According to the website, the applicant must collect bank and mortgage statements, utility bills, and income documentation such as pay stubs or tax returns.
The program will end once all funds are allocated, which is projected to happen by 2025, according to the website. The state cautions applicants that the process can take several weeks to process due to the high volume of applications submitted.
You can find all the details about the program. here. The website also has a comprehensive “frequently asked questions” for those looking for even more information.
Prospective applicants who do not have access to a computer or the Internet can contact their mortgage provider or by calling a HUD-certified housing counselor at 1-800-569-4287.