The state has launched the California Mortgage Relief Program to provide a one-time grant to qualified homeowners who have fallen behind on their housing payments. Using $1 billion in federal funds, the grants help homeowners who had a financial hardship during the COVID-19 pandemic by covering missed housing payments. Assistance provided through this program is not a loan and does not need to be paid back.
Unlike previous mortgage assistance programs, the California Mortgage Relief Program offers assistance to qualified homeowners and the assistance does not have to be paid back. It is a one-time grant to catch up homeowners who have fallen behind on their housing payments due to pandemic-related financial hardships.
Homeowners who receive these grants should talk with a tax professional about any impact this may have on their income taxes.
The program is open to all California homeowners who meet the eligibility requirements. Applicants must meet all of the following requirements:
Household income is at or below 100% of their county’s Area Median Income;
Own a single-family home, condo or permanently affixed manufactured home in California; and
Have faced a pandemic-related financial hardship after Jan. 21, 2020.
For the California Mortgage Relief Program, a financial hardship is either a reduced income or increased living expenses due to the COVID-19 pandemic. Examples of living expenses are medical expenses, more people living in the household, or costs for utility services.
A sample list of documents to gather before completing the application includes:
Income documentation (i.e. paystubs, tax returns, or unemployment document)
Depending on their unique circumstances, some applicants will have to provide different kinds of information as well.
Mortgage assistance grants are directly tied to the past due amount the homeowner owes their lender, up to a maximum of $80,000 per household. Homeowners who are delinquent by more than $80,000 at the time they submit their application would not be eligible for assistance from the program. Funds awarded for mortgage reinstatement will be sent directly to the homeowner’s lender or mortgage servicer. The assistance provided through this program is not a loan and does not need to be paid back. Homeowners who receive these grants should talk with a tax professional about any impact this may have on their income taxes. You will find a link for this program in the description below. Please remember to give me a quick like and comment if you found this information helpful. Please subscribe to support this channel.
Click here to check your eligibility and apply.
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