C.A.R. Housing Affordability Fund Mortgage Protection Plan

New Program to protect new home owners if they lose their job

The California Association of Realtors announced yesterday the C.A.R. Housing Affordability Fund Mortgage Protection Plan (C.A.R.H.A.F.MPP) for first time buyers. The goal is alleviate some of the fear of buying a home and suddenly losing your job.

First time home buyers who lose their jobs due to layoffs could be eligible to receive $1,500 per month for six months to help make their mortgage payments.

From the C.A.R. website

new program designed to provide peace of mind to first-time buyers who are hesitant to enter the housing market due to concerns about potential job loss, and subsequently being unable to meet their monthly mortgage obligations.s

.A qualified co-buyer can also participate in the program and receive a monthly benefit of $750.00 per month for up to six months.

(CAR) has dedicated$1,000,000 towards in MPP, and estimates that up to 3,000 families will benefit from the program this year.

To qualify for the program Applicant 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)

To apply for the program, home buyers must request an application for the H.A.F. Mortgage Protection Program from their REALTOR®.

Sounds like a great program, I just wander why only first time buyers qualify.