Similar to many of the automotive companies and the assurances they are giving to car buyers, the California Assocation of Realtors (C.A.R) just released some reassuring news to first-time home buyers with the C.A.R. mortgage protection plan.
From what I could tell, this is the first of its kind.
From C.A.R. –
C.A.R. launches mortgage protection plan for first-time home buyers
The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) today launched the C.A.R. Housing Affordability Fund Mortgage Protection Program (C.A.R.H.A.F. MPP), for first-time home buyers.
Through the Housing Affordability Fund Mortgage Protection Program, first-time home buyers who lose their jobs due to layoffs may be eligible to receive $1,500 per month, for six months, to help make their mortgage payments. A qualified co-buyer also can participate in the program, and receive a monthly benefit of $750 per month for up to six months. Program benefits also include coverage for accidental disability and a $10,000 death benefit.
C.A.R.’s Housing Affordability Fund is dedicating $1 million toward its Mortgage Protection Program, and estimates that as many as 3,000 families will benefit from the program this year.
To qualify for the Mortgage Protection Program, applicants must:
· Be a first-time home buyer – someone who has not owned a home in three
or more years (it must also be a primary home)
· Open escrow April 2, 2009, or later, and close on or before Dec. 31, 2009
· Use a California REALTOR® in the transaction
· Purchase the property in California
· Be a W-2 employee (cannot be self-employed)
It is important to note that a first-time home buyer is not someone who has never purchase a home before, but rather someone who has not owned a home in the past three years. Makes me wonder why they even call it a first-time home buyer in the first place, just confuses things.
How will this affect Big Bear home buyers? It won’t be a huge help as the majority of our buyers are investors or second home owners. But, for the 25% or so that are primary home buyers, this is just one of the many things that the Government and some trade groups are doing to help buyers out.
Add this to the $8000 first-time home buyer tax credit, along with State and Local benefits in the works, and buyers have some big incentives to make a purchase this year. Not to mention interest rates and prices are crazy low.
If you are looking to by a primary home, and you are using a California Realtor, this coverage is just added protection. Best of all and unlike most insurance, it costs nothing for the buyer to get.
Here are some more details for interested parties.
Q&A on the Mortage Protection Plan
Mortgage Protection Plan Application.
It is news like this that we need to be hearing more of. Even though things are being done on a national level to help homeowners and new home buyers, it is great that state and local governments are getting in on the action to help these people out as well.