Up to $25,000 Available to Help California Homeowners Bring Their Mortgage Current.
The Mortgage Reinstatement Assistance Program provides assistance to eligible homeowners who, because of a financial hardship, have fallen behind on their payments and need help to reinstate their past due first mortgage loan.
Benefit assistance through MRAP can be a one–time payment of up to $25,000 to cover principal, interest, taxes and insurance, as well as any homeowner’s association dues.
The Mortgage Reinstatement Assistance Program (“MRAP”) is one of CalHFA MAC’s federally-funded programs developed to provide temporary financial assistance to eligible homeowners who wish to remain in their homes, but are in imminent danger of losing their home to foreclosure.
MRAP provides funds to assist income-qualified homeowners to help them cure their delinquent first mortgage loan arrearages, which may also include payments needed to reinstate their loans from foreclosure.
Program Eligibility and Highlights*
- Up to $25,000.00 per household in assistance.
- Homeowner must qualify as a low-to-moderate income household.**
- Homeowner must complete and sign a Hardship Affidavit / 3rd Party Authorization to document the reason for the hardship.
- Homeowners who have recently encountered a financial hardship due to their military service are eligible.
- Homeowner has adequate income to sustain reinstated first- lien mortgage loan, per CalHFA MAC approved investor guidelines.
- Homeowner must agree to provide all necessary documentation to satisfy program guidelines established by CalHFA MAC.
- Mortgage loan is delinquent as substantiated by homeowner’s hardship documentation. Loans in foreclosure are eligible.
- The homeowner’s first-lien PITI, and any escrowed homeowner’s association dues or assessments, payment must be a maximum of 38% of the gross household income excluding temporary income (e.g., unemployment or short-term disability benefits) to meet the definition of an affordable payment. Reinstatement assistance may be combined with a loan modification in order to achieve the definition of an affordable payment.
Property and Loan Eligibility Requirements
- Current unpaid principle balance ("UPB") of the first lien mortgage loan cannot be greater than $729,750.
- The property securing the mortgage loan must not be abandoned, vacant or condemned.
- The applicant must own and occupy the property.
- The property must be the applicant's primary residence.
- The property must be a single family, 1-4 unit attached or detached house or condominium.
(Mobile homes are eligible if they are permanently affixed to the real property that is secured by the first lien.)
- The property must be located in California.
- Homeowner in an “active” bankruptcy is ineligible for MRAP
assistance consideration. Homeowners who have previously filed
bankruptcy are eligible for consideration with proof of court order
“Dismissal” or “Discharge”.
- MRAP benefit assistance request for reinstatement with a first-lien
PITI and any escrowed homeowner’s association dues or assessments,
payment of greater than 38% of the homeowner’s gross
monthly household income, excluding temporary income (e.g.,
unemployment or short-term disability benefits) will be considered
unaffordable and is excluded from MRAP reinstatement benefit
assistance unless that assistance is combined with a loan
- Loan is less than two (2) payments past due as of the date of
request for assistance.
HomeStrong USA is an approved provider of Keep Your Home California's Transition Assistance Program.
* General program eligibility is determined by CalHFA MAC, the housing counselor or servicer based on information received from
the homeowner. Program-specific eligibility is determined by CalHFA MAC on a first-come/, first-approved basis until program funds and funding reserves have been exhausted. Loan servicer will implement the HHF program based on participation agreement terms and conditions. Funding allocation will be tracked, monitored and performed by CalHFA MAC in a centralized processing operation.
** Low-to-moderate income of 120% or less of HCD Area Median Income (as defined by the California State Department of Housing and Community Development), for a family of four, in the county where the homeowner resides.