Struggling with mortgage payments? California offers relief program for homeowners

California homeowners struggling to make payments can apply for assistance with the California Mortgage Relief Program.

The program, launched in January, covers past due mortgage payments in full as a one-time grant — up to $80,000 per household — with a direct payment to the homeowner’s mortgage servicer.

“In many ways, this is a game-changer and it will help people get back on their feet as we’re starting to open back up again,” said Assemblyman Miguel Santiago, D-Los Angeles.

The program is intended to help low- and moderate-income California homeowners struggling with mortgage payments.

To qualify, you must have missed at least two mortgage payments before the launch of the program, and your household income must be at or below 100% of your county’s Area Median Income based on the U.S. Department of Housing and Urban Development’s 2021 Homeowner Assistance Fund Income Limits.

You must also be the owner of a single-family home, condo or permanently affixed manufactured home within the state and have faced pandemic-related financial hardship after Jan. 21, 2020.

According to program statistics, 378 total households have been helped thus far, totaling more than $12.5 million. The average amount paid out is $33,126.

The $1 billion in funding comes from the American Rescue Plan Act’s Homeowner Assistance Fund, with money being disbursed to qualified homeowners until all funds are gone, with an end date projected of 2025.

There is no deadline for applications, but homeowners are encouraged to apply as soon as possible.

“Don’t leave money on the table. Apply for it,” Santiago said.

Applications must be completed at the program’s website, CaMortgageRelief.org, which can also be visited to review eligibility information and for a detailed description of the terms of the program.

Applicants are required to upload documents to determine eligibility, such as mortgage statements, bank statements, utility bills and income documentation. Once those documents have been uploaded, the application process can take less than 30 minutes, according to a program statement.