California residents struggling to afford their mortgages may soon see relief.
The American Rescue Plan Act’s Homeowner Assistance Fund is prepared to give $1 billion dollars to the state for mortgage relief.
These funds are designated for residents in California in need of catching up on their behind mortgage payments.
The California Mortgage Relief Program
This program is designed to help between 20,000 and 40,000 homeowners in California who are behind on mortgage payments.
The funding is specifically for socially disadvantaged and underserved communities.
These populations were hit the hardest during the pandemic.
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The support will be given in the form of a one time grant. It will not need to be repaid. The payment goes directly toward the mortgage.
Who can get the relief payment?
If you live in California and you’re at or below 100% of the county’s area median income, you are eligible to apply.
You need to own a single family home, condo, or manufactured home. You must have faced a financial hardship caused by the pandemic after Jan. 21, 2020.
You need to meet one of the following requirements to qualify:
- Receive public assistance
- Be burdened by your housing situation
- Not have any other options through your mortgage servicer
You do not need to meet all three of those requirement, just one.
How to apply to the California Mortgage Relief Program
The program will begin receiving applications in the upcoming weeks.
Through this program, past due payments will be covered in full.
The maximum a household can receive is $80,000.
The payments will go directly to the applicant’s mortgage lender.
Make sure you have your mortgage statement, bank statements, utility bills, and income documents when you apply.
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