It’s a gimmick. But as gimmicks go, I like this one.
The California Association of Realtors is offering to pay first-time buyers’ mortgages for up to six months if they lose their jobs.
The program is intended to reassure buyers that they won’t face foreclosure if they lose their job during the recession, which has pushed California’s unemployment rate above 10%.
To participate in the Housing Affordability Fund Mortgage Protection Program, 
you need to be:
- A first-time homebuyer who closes before Dec. 31, 2009.
- Employed and eligible to receive a W2 tax form. You can’t be self-employed.
- Under 70 years of age.
- Using a California Realtor and buying a primary home in California.
What you get is an insurance policy much like the home warranties sellers often provide buyers that guarantees a home’s major appliances for the first year of ownership.
In this case, the policy is provided by your real estate agent and provides up to $1,500 a month, for six months, to help pay your mortgage if you’re laid off or are out of work because you’re injured in an accident. (Illness is not covered.)
It’s free. The agent pays the premium. You just have to ask for an application.
The California Realtors expect 3,000 households will receive assistance through the program this year.
Of course Californians have a much better incentive than this to buy now.
California home sales were up 83% in February (over February 2008) because the median selling price for single-family homes was down 40.8%.
(3 votes, average: 4.33 out of 5)
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