Here's What You Want To Know About The California Mortgage Relief Program

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You must have heard a lot about the California Mortgage Relief Program, but how much do you know about the government's initiative to assist pandemic-affected people? And how did this relief program work? Here's what you'll need to know about this program.

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What is the California Mortgage Relief Program?

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The COVID-19 pandemic was a world-changing event in 2020 when everything came to a grinding halt. In the midst of a healthcare crisis, businesses had to seize operations and many industries had to shut down. Not to mention, homebuyers and homeowners struggling to make mortgage payments experienced tremendous pressure.

At this time, states in the US needed to do their best to implement programs that could work out for the benefit of their citizens.

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The State, under California’s Governor Gavin Newsom’s strategy, provided a similar type of support in December 2021 by launching the California Mortgage Relief Program. The goal of the program was to help homeowners who were falling behind on their mortgage payments. This shouldn't come as a surprise, considering how many people experienced financial hardships during the COVID-19 pandemic.

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You will be glad to know that the California Mortgage Program is generously sponsored by the 2021 American Rescue Plan Act’s Homeowner Assistance Fund and supervised by the California Housing Finance Agency Homeowner Relief Corporation.

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The California Mortgage Relief Program is doing its best to reach out and help homeowners. Specifically, people who are striving to pay their mortgage fees but need assistance in making property tax payments.

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And that's not all. On March 31, 2023, the California Mortgage Relief Program increased the limit for the maximum amount of assistance that each household can apply for. Previously, if you defaulted on property taxes and needed assistance, the most you'd get was $20,000. Now, that value has gone up, so each household can apply for assistance worth a maximum of $80,000.

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The registration for the California Relief Program is free of cost. And it clearly shows that the state's government is serious about helping homeowners bounce back from the crippling effects of the pandemic.

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How Many People Were Helped via California Mortgage Relief Program?

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The Governor, Gavin Newsom, planned to assist approximately 20,000 to 40,000 struggling homeowners. The goal of the California Mortgage Relief Program was to use capital reserved for homeowners belonging to marginalized communities as they were hit the hardest by the financial effects of the Covid-19 pandemic.

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What did the Governor, Gavin Newsom say about the California Mortgage Relief Program?

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The Governor of California, Gavin Newsom promised to provide relief to the state’s homeowners. He elaborated that the government was well aware of the pandemic took a financial toll on Californians. This especially pertains to people who lost their jobs and had to shut down their businesses because of the pandemic.

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Amid these troubles, many homeowners were worried about the looming threat of foreclosure, and rightfully so. With so many people concerned about losing their home, the government decided to step in and provide some much-needed assistance.

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Lourdes M. Castro Ramírez, Secretary of the Business, Consumer Services and Housing Agency also forwarded his support. He explained that the California Mortgage Relief Program will assist families to recover physically, financially and emotionally from the pandemic. The goal is to bring a sense of stability back so people no longer worry about how they'll manage to keep up with housing installments.

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Who Qualifies for the Relief Program?

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The program has a set of requirements that you'll need to meet if you're considering applying for it.

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• Faced Financial hardship after January 2020

Households that faced pandemic-related financial hardships after January 21, 2020, can apply for the program. When providing an attestation, you'll need to give details to describe the nature of the hardship.

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• Combined Household Income

The combined household income earned by family members over the age of 18 should be at or below 150 percent of the AMI. You can calculate your area median income through the California Mortgage Relief website.

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• Homeowners are Not Allowed to Have Cash or Assets.

The main aim of a Relief Program is to help homeowners who are struggling to make property tax and mortgage payments. That's why homeowners applying for the program can't have assets or cash on hand, except for their retirement savings, equal to or more than the relief funds needed + an extra $20,000.

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• Missed At least One Property Tax Payment and Two Mortgage Payments

Homeowners applying for relief should have missed at least two mortgage payments by August 1, 2023, and should currently be behind on payments. For property tax assistance, they should have missed at least one payment by August 1, 2023.

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• Live In The Property As Your Primary Residence

You must own the California property in question and must occupy it as your primary residence.

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What are the Different Loans Backed by the Federal Government for the California Mortgage Relief Program?

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The pandemic-affected mortgage relief is for the loans mentioned below:

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• Covered by the Federal Housing Administration (FHA).

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• It is covered under Section 255 of the National Housing Act, which includes home partiality conversion mortgages overseen by the Urban Development (UD) and U.S. Department of Housing.

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• Approved under Section 184 or 184A of the Housing and Community Development Act of 1992, which targets Hawaiian housing and American Indian families.

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• Protected by the U.S. Department of Veterans Affairs (VA).

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• Approved and covered or formed by the U.S. Department of Agriculture (USDA).

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• Bought or protected by the Federal National Mortgage Association or Federal Home Loan Mortgage Corp.

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Is Your Loan Federally Supported?

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You can always confirm if the federal government supports your loan in the following ways:

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• Contact Your Mortgage Provider

Write to or call your mortgage servicer for information on whether your loan is federally supported. They're required to tell you about the provider of your mortgage and will provide you with necessary contact information.

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• Surf the Internet

The internet has the answers for everything and will help you here, too. Go online and search for loans; look up tools provided by Freddie Mac or Fanny Mae to confirm if any of these government-backed solutions are the owners of your mortgage.

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• Check the Official Website

Look up Mortgage Electronic Registration System and go on the URL to find out your vendor in case you don’t know who the provider is.

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Bottom Line

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The California Mortgage Relief Program undoubtedly showed up to be a ray of hope during the distressing duration of Covid 19 pandemic.

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It helped plenty of homeowners get back on track with paying their mortgages. If you're falling behind and need some assistance, consider checking out the eligibility criteria and applying for the relief program.