California Mortgage Relief Program Helps Homeowners

California

Through the state’s Mortgage Relief Program, California will provide $1 billion in grant funds to up to 40,000 homeowners who have fallen behind on their mortgage payments across the state.

These funds are reserved for homeowners in underserved and socially disadvantaged areas, which have been struck the worst by the pandemic. The 2021 American Rescue Plan Act’s Homeowners Assistance funds the California Mortgage Relief Program (CMRP) and is open to all eligible Californians. 

For more information on getting a grant and also learning about refinance programs, take a look at this.

“We are committed to supporting those hit hardest by the pandemic, and that includes homeowners who have fallen behind on their housing payments,” said Governor Newsom. “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. Our Housing is Key program has already provided renters 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.” 

The California Mortgage Relief Program is part of the state’s Housing is Key initiative. The program was approved by the Department of the Treasury in December 2021, and applications are still being accepted through the California Mortgage Relief website. The program plans to distribute all grant funds by September 30, 2025. 

This program will pay up to $80,000.00 worth of mortgage, property tax, and insurance bills for qualified applicants. Funds from the program are given directly to your mortgage servicer. The program is absolutely free and recipients don’t have to repay the funds. Eligible applicants must be at or below 100% of their county’s Area Median Income. They also must own a single-family home, condo, or permanently affixed manufactured home. Applicants also must have faced a pandemic-related financial hardship after January 21, 2020. However, they may only own and occupy one property.  Homeowners must be at least two payments past due by December 27, 2021. Applicants also must be either a recipient of public assistance, must pay more than 40% of their income in housing costs, or must have been denied an alternate mortgage workout plan by their servicer. They can’t have cash or assets equal to or greater than the money you need plus $20,000.00. This amount does not include money in a retirement account. The money is available on a first-come, first-served basis.

Homeowners will need several financial documents to complete the application, such as a mortgage statement, bank statement, utility bills, and income documentation for all household members over 18 (W-2s, tax returns, pay stubs, etc).

For more information on getting a grant and also learning about refinance programs, take a look at this.

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