The California Mortgage Relief Program provides grants of up to $80,000 to California homeowners who are experiencing a financial hardship. A mortgage expert explains how this program works and who is eligible.
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How the California Mortgage Relief Program Works
The California Mortgage Relief Program was created in response to the COVID-19 pandemic, which caused financial hardships for millions of Americans.
If you’re a California homeowner and are currently behind on mortgage payments or property taxes or have a partial claim (which we’ll explain in a moment) or deferred balance, you may be eligible for up to $80,000.
The program is free and the funds are paid as a grant, which means they do not have to be paid back.
The California Mortgage Relief Program was funded by the 2021 American Rescue Plan Act and is operated by the CalHFA Homeowner Relief Corporation.
Basic Eligibility Criteria
To be eligible, you must meet at least one of the following criteria:
- You’ve missed at least two payments on your primary mortgage by February 1, 2024 and are currently past due. To get mortgage relief, your mortgage servicer must be participating in the program. You can check the status of your servicer here.
- You must have missed at least one property tax payment by February 1, 2024.
- You have a partial claim or loan deferral that was set up in January 2020 or later.
- You have a reverse mortgage and you owe your servicer for past due property taxes and/or homeowner’s insurance.
You must also meet all of the following criteria:
- Your household income must be at or below the county income limit. You can use this simple calculator to see if your income qualifies.
- You own and live in a single-family home, townhome, condo, duplex, triplex, quadplex, or a manufactured home with a permanent foundation located in California.
- You experienced a pandemic-related financial hardship after January 21, 2020 in the form of a loss of income or an increase in household expenses. You’ll need to explain the hardship and may need to provide documentation to prove it.
- You cannot have cash on hand that is equal to or greater than the relief funds plus $20,000. In other words, if the relief funds equal $30,000, you cannot have more than $50,000 cash on hand (relief funds + $20,000).
- The unpaid principal balance of your primary mortgage loan cannot have been greater than the conforming loan limit at the time it was originated. Click here to look up the conforming loan limit at the time you got your primary mortgage.
What is a partial claim?
A partial claim is a “silent” second mortgage commonly used to cover deferred payments on FHA mortgages. Partial claims typically do not accrue interest or require payments, but they usually need to be paid back if you sell your home or refinance your mortgage.
Current Interest Rates
Refinancing for a lower interest rate or getting cash to pay off debt could be an option as well. Check out the table below for the latest refinance mortgage rates.
Want to see more options? Check all mortgage rates here
What Documentation You Will Need
The qualifying process is similar to qualifying for a mortgage. You’ll likely need to provide the following items:
- Mortgage statement
- Bank statement
- Utility bill (usually to prove residency)
- Income documentation such as W2s, pay stubs, tax returns, or unemployment income documentation
You may need to provide additional documentation if your finances are complex or unique. We recommend gathering up as much of this documentation as possible before you apply so the application process goes more smoothly.
Where to Apply
If you would like to apply for CA mortgage relief, you can do so on the California Mortgage Relief Program website.
Frequently Asked Questions
Do you have to pay back the California Mortgage Relief Program?
No, the funds are in the form of a grant that does not have to be paid back.
What is CA payment relief program?
The California payment relief program offers up to $80,000 to homeowners who are late on mortgage payments, property tax payments, or have a partial claim or deferred balance.
What is the California Mortgage Debt Relief Act?
The California mortgage debt relief program offers up to $80,000 to homeowners who are late on mortgage payments, property tax payments, or have a partial claim or deferred balance.
What is the property tax relief program in California?
You may be referring to the California Mortgage Relief Program, which offers up to $80,000 to homeowners who are late on mortgage payments, property tax payments, or have a partial claim or deferred balance.
What is mortgage relief California?
You may be referring to the California Mortgage Relief Program, which offers up to $80,000 to homeowners who are late on mortgage payments, property tax payments, or have a partial claim or deferred balance.
