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Will “ KEEP YOUR HOME CALIFORNIA” , the new California State CalHFA program help home owners in Contra Costa County?

According to  California Housing Finance Agency in Sacramento, more than 400,000 households may be assisted by this program that help families struggling with their mortgage stay in their homes in California.  Here’s the qualifying breakdown.  Let’s see if this will help people in Contra Costa County.

The homeowner must qualify for the 2009 Moderate income limits.  Contra Costa County income limits are $75,000 for 1 person, $85,700 for 2 people, $96,450 for 3 people and $107,150 for a family of 4.  These income limits are pretty good.  They’re much better than the post 2008 income limits that rarely included homeowners in the  Greater San Francisco Area.

The borrower does not need to be a CalHFA borrower.  California is currently talking to major lenders that have done business in California to become part of this program.

There has to be reasonable hardship, loss or reduction of income, disability.  I’m sure there will be documentation to support the homeowners claim.

The borrower must be able to support the modified payments and satisfy all guidelines and borrower’s mortgage must be delinquent and in imminent default.  (I’m not sure what step in the  process this is.)  Lenders may interpret this on their own.

Your mortgage has to be an original first mortgage, in other words, the loan you purchased your home with, not a refinance.  That’s called non-recourse in California.  The loan amount may not exceed $729,500 and your property has to be owner occupied and  in good condition.

Here’s an interesting fact: THE LOAN HAS TO BE ORIGINATED BEFORE  JANUARY 1, 2009.  Most of the hardships I see are loans originated before 2009, as these were the no qualification, adjustable high balance loans that got many of my clients into trouble as they adjusted.

I hope this program helps people in Contra Costa County as well as other parts of California.  I’m glad to see more options for homeowners.