SACRAMENTO, Calif. — California homeowners falling behind on their mortgage payments can now apply for up to $80,000 per-household in COVID-19 relief funds to get back on track.
The California Mortgage Relief Program opened applications on Wednesday. Among the requirements to receive relief funds, homeowners need to either be already receiving government assistance, putting more than 40% of their income toward mortgage payments or denied an alternative arrangement with their mortgage servicer.
Applicants will be asked to answers questions about the type of home that is owned, the number of mortgage payments missed and other financial hardships from the pandemic.
The one-time grant would be a direct payment to the homeowner's mortgage service, according to the program, but the program is free and funds do not need to be repaid.
“As part of our Housing is Key initiative, this program rounds out a comprehensive suite of housing assistance programs that serve a broad swath of California," Lourdes M. Castro Ramírez, California Business, Consumer Services and Housing Agency Secretary, said in a press release. "Including help for the unhoused and rental assistance to many impacted by this pandemic. Homeowners should not delay in visiting the website to get started.”
One-billion dollars in homeowners' assistance will be dispersed to California homeowners, with a projected full-dispersal date of 2025.
“We encourage anyone who missed mortgage payments over the past two years to find out if they may be eligible to get caught up on missed payments,” Tiena Johnson Hall, California Housing Finance Agency Executive Director, said in a release. “The California Mortgage Relief Program is open to homeowners even if they have received government assistance from other COVID-19 programs."
