If you are a Californian who has been waiting for the perfect time to buy your first home, take a look at the clock, because that time has arrived!
Now, we all know about low interest rates and affordable prices, but the current state of the economy has made many qualified first-time buyers leery of taking the leap. I mean, what if they were to get laid off? How would they make their monthly payment? That’s the one fear that has kept so many from making the purchase, but guess what? The California Association of Realtors® Mortgage Protection Program is the answer to their prayers and the reason that now (or at least until the end of the year) is the time to make buying their first home a reality.
This program--which C.A.R. announced at the end of July but few people seem to know about--provides qualified first-time buyers with protection that will help them make their mortgage payments if they find themselves involuntarily unemployed. The California Association of Realtors® Housing Affordability Fund (“CARHAF”) has committed $1 million to, as the FAQ page of their website states, “...help build confidence in the purchase of a home and to reduce the fear of foreclosure in the event of job loss.”
This free program (yes, I said f-r-e-e) makes qualified first-time buyers eligible to receive up to $1,500 per month for up to six months to help make their monthly mortgage payments in the event of a lay-off or other qualified job loss. An eligible co-buyer can also participate in the program and receive a reduced benefit of up to $750 per month for the same time period if unemployment occurs. And, this benefit includes taxes and insurance if they are impounded as part of the monthly payment.
In order to qualify for the program, the buyer(s) may not have owned property in the last three years and must open and close escrow between 4/2/09 and 12/31/09, purchase a principal residence in California, be represented by a California Realtor®, and be a W-2 employee. However, there are no income or home price caps. Of course, all the details of the program can be found on the C.A.R. web site.
Hopefully this outstanding program will inspire confidence in those first-time buyers whose anxieties over the economy have made them hesitant to turn their dream of ownership into a reality. And, with only a little over two months left to qualify, the time to contact a California Realtor® who can help them find that perfect home is now!
by Brian Wilcher
The Agent Center Staff Writer
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