The California Association of REALTORS®, through its Housing Affordability Fund, is offering a new Mortgage Protection Plan. What is the Mortgage Protection Plan? The Plan offers a combination of involuntary unemployment, accidental disability and accidental death protection for qualified first-time home buyers.

Through the program, first-time home buyers who lose their jobs or become accidentally disabled may be eligible to receive 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.

Cost??? Nothing, nada, zip, zilch! This is an insurance program. If the home buyer is granted an insurance policy, the insurance premium is prepaid for one year by the CAR Housing Affordability Fund. The CAR ‘s Housing Affordability Fund is dedicating $1 million toward it Mortgage protection Program, and estimates that as many as 3,000 families will benefit from the program.

An applicant must:

·        Be a first-time buyer who hasn’t owned a home in the last three years;

·        Open and close escrow between 4/2/09 and 12/31/09;

·        Purchase a primary residence in California;

·        Be represented by a California REALTOR®; and

·        Be a W-2 employee (i.e. not self-employed) but cannot be a sole proprietor, partner of controlling stockholder in the business in which you are employed, or a dependent of a sole proprietor, partner of a controlling stockholder in the business in which you are employed.

There are no income or home price caps under this program.

Home buyers must apply through a California REALTOR®. The REALTOR® will submit the completed application to CARHAF of the home buyer’s behalf. The application can be downloaded at www.carhaf.org.

For a program Q & A click this link.

So…if you are looking for a Fremont home, or you are doing your real estate shopping in any of the areas around Fremont—Livermore, Pleasanton, San Ramon, Newark, Union City, Danville—the Mortgage Protection Plan will help ease your mind.