Insurance For First Time Buyers

Buying a home is very scary, when my wife and I bought our home, the deposit was the largest check we every wrote, until 30-days later when we wrote an even bigger check to close escrow on our little piece of Alameda. The new mortgage caused additional fear when housing cost became four times the amout we were paying for our little rented townhouse, but the California Association of Relator in an attempt to get people buying again has a new program.

CAR has launched the Housing Affordability Fund has launched this program designed to provide peace of mind to first-time buyers who are concerns about potential job loss, and eventually being unable to meet their monthly mortgage payment.

To qualify for the Mortgage Protection Program, Applicants must:

• Be a first-time home buyer – someone who has not owned a home in the last three years.
  
• 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)
  

Esentially what the Realtors organization is doing is taking out an insurance policy for you to protect against potential job loss. The insurance policy is for involuntary unemployment and accidental death & disability. The home buyer receives up to $1,500 per month for up to six months to help make their mortgage payments. A qualified co-buyer can also participate in this program, for a reduced monthly benefit of up to $750 per month for up to six months in the event of a job loss or disability. In addition, the program offers a one-time $10,000 accidental death benefit.

The program has a 6 month vesting period and the the buyer needs 4 months of  concurrent work to be eligible. The benefit appears to be for up to six months.

For a copy of the MPP Application Click here.
This form must be submitted by an active California REALTOR® to apply.
For examples on how the program works Click Here.
For a list of  Frequently Asked Questions Click here