The California Mortgage Relief Program is expanding to provide additional assistance and expand eligibility in order to assist even more homeowners who have struggled with housing payments as a result of the COVID-19 pandemic, after successfully distributing nearly $300 million in assistance to qualified homeowners statewide.
There is a specific program in place, the Section 8 housing program, for those in California who lack the resources to permanently secure housing.
What Is Mortgage Relief Program?
The goal is to assist low-income families in finding homes that fit within their tight budgets. It is run by the California Public Housing Authority (PHA), which is a state-wide organization with more than 100 offices.
The US Department of Housing and Urban Development provides funding for it (HUD). Vouchers representing the funding are given directly by the applicant to the landlord or other property owner.
There are four significant ways the program is growing:
- Homeowners who have already received funding but still qualify and require additional help may reapply for up to an additional $80,000 in total assistance.
- Homeowners with partial claim second mortgages or loan deferrals obtained in or after January 2020 are now eligible for assistance.
- Since March 1, 2023, applicants must have missed at least two mortgage payments OR at least one property tax payment to be eligible for assistance with past-due mortgage and property tax payments.
- Owners of primary residences with up to four units on the property may now qualify.
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How To Qualify?
Candidates must be citizens of the United States of America or an equivalent country. Acceptance is determined by the number of family members and the family’s combined gross annual income. Generally speaking, the income cannot be greater than 50% of the median income for the area.
People are frequently given preference if they are pregnant, disabled, caring for elderly relatives, or have young children. Criminal histories do not automatically disqualify applicants; approvals are decided on a case-by-case basis.
More than 10,000 California homeowners have received grants through the program since it began to assist them in catching up on their mortgage payments.
All states received crucial mortgage relief funds through the Homeowner Assistance Fund established by the American Rescue Plan Act. Beginning on December 27, 2021, California will start paying out its $1 billion allocation to eligible homeowners until all the money has been distributed.
More than 10,000 California homeowners have received grants through the program since it began to assist them in catching up on their mortgage payments.
All states received crucial mortgage relief funds through the Homeowner Assistance Fund established by the American Rescue Plan Act. Beginning on December 27, 2021, California will start paying out its $1 billion allocation to eligible homeowners until all the money has been distributed.
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