Mortgage Protection Program
-
Upload
scott-schang -
Category
Real Estate
-
view
717 -
download
0
description
Transcript of Mortgage Protection Program
Where homeownership education takes flight!
Offered by the California Association of Realtors - Housing Affordability Fund
Mortgage Protection Program
First Time Homebuyer Benefit for Californians
A Complete Guide to the
Broadview Mortgage Corporation
1-866-667-6724
Where homeownership education takes flight!
Frequently Asked Questions
• What is the Mortgage Protection Program?
• Who qualifies for this program?
• What is meant by Involuntary Unemployment?
• What are the waiting periods?
• Other answers to frequently asked questions– How much does it cost?– How do home buyers apply?– How long will this program last?– Can I upgrade my benefits or renew the coverage after one
year?
Where homeownership education takes flight!
What is the Mortgage Protection Program?
• Combination Involuntary unemployment, accidental disability and accidental death protection for first time home buyers
• California Association of REALTORS® program– Housing Affordability Fund– $1,000,000 committed to program
• Qualified first-time home buyer benefits– Up to $1,500 per month for up to six months if involuntarily
unemployed or accidental disability– Co-borrower $750 per month for up to six months if
involuntarily unemployed or accidental disability– One-time $10,000 accidental death benefit
Where homeownership education takes flight!
Who Qualifies for Mortgage Protection?
• Must be a first time home buyer who hasn’t owned a home in the last three years
• Open and close escrow between 4/2/2009 and 12/31/2009
• Purchase a primary residence in California
• Be represented by a California REALTOR®
• Be a W-2 employee (not self employed) but can not be a sole proprietor, partner or controlling stockholder in the business in which you are employed, or a dependent of a sole proprietor, partner or a controlling stockholder in the business in which you are employed
• No income or home price caps under this program
Where homeownership education takes flight!
What is Involuntary Unemployment?
• Under this plan, Involuntary Unemployment is defined as totally and continuously losing full-time employment as a result of:• A permanent involuntary termination of employment; or• An involuntary layoff or suspension of employment; or• An authorized, unionized strike or labor dispute by a
chartered or previously organized trade or labor union; or • A lockout, discharge of employees or temporary closing of
business in response to organized employee activity; or• A state or federally declared disaster caused by a
geological or weather-related natural event
• Involuntary Unemployment does NOT include • quitting, resigning, retiring expiration of an employment
contract, being fired for cause, or being on leave due to accident, sickness, disability , family obligations, childbirth, pregnancy, or due to scheduled seasonal or temporary breaks
Where homeownership education takes flight!
What are the Vesting and Waiting Periods?
• The insurance policy requires a “vesting” period of six (6) month before becoming eligible for benefits
• There is also a four (4) month “actively at work” requirement
• These two waiting/vesting periods can run concurrently
• There is no initial vesting period for Accidental Disability benefit however, four (4) month “Actively at Work” requirement still applies
Where homeownership education takes flight!
Other Frequently Asked Questions
• How much does this insurance policy cost?– Nothing, there is no cost to the homebuyer for the 1st year
• How do home buyers apply?– Must apply through a California REALTOR®. The
REALTOR® will submit the completed application to the CARHAF on the home buyer’s behalf.
• How long will this program last?– Applications will be reviewed and insurance policies will be
awarded on a first come, first serve basis until the program funds are depleted or until CARHAF discontinues the program, whichever occurs first.
• Can I upgrade my benefits or renew the coverage after one year?– Prior to the end of the first year, you may be given the
voluntary option to renew at a “contributory” rate, which may include the same benefit package or an enhanced package.
Where homeownership education takes flight!
Mortgage Protection Plan Take-Aways
• Make sure the Agent you hire to represent you in your home purchase is a member of the California Association of REALTORS®– Attend “Hiring a Real Estate Agent” web-class for help with
finding, interviewing and hiring experienced agents
• Must be a first time home buyer– Cannot have owned in past 3 years
• No income or purchase price limits
• Must close escrow on or before 12/31/2009
Where homeownership education takes flight!
www.REblueBird.org
Receive notification of upcomingFirst-Time Homebuyer Education Web Classes
Homebuyer classes sponsored by
Broadview Mortgage Corporation
1-866-667-6724
Some topics covered in no cost web classes:
What you must know about Hiring a Real Estate Agent and finding the best deals
How to find down payment assistance programs
Special loans for employees of public schools and community colleges
100% financing options for California public employees – CalPERS
A Complete Guide to Credit, qualifying and completing a loan application
Five 100% financing programs in California
A Complete Guide to Closing Costs and the Good Faith Estimate
A Complete Guide to buying Foreclosures and Short Sales