C.A.R. Insurance for First-Time Home Buyers

From the C.A.R. magazine, by Paula Hess

The California Association of Realtors' Housing Affordability Fund (C.A.R.H.A.F.) just unveiled the Mortgage Protection Program, which is designed to restore confidence and assist as many as 3,000 first-time homeowners who purchase a home between April 2, 2009 and December 31, 2o09.

C.A.R.H.A.F. has committed $1 million to support the Mortgage Protection Program - and The National Association of Realtors another $420,000 - an insurance product that kicks in when the unexpected happens: job loss. First-time buyers who enroll in the program can draw upon their mortgage protection policy in the event they lose their job after purchasing their home. Under the program, first-time buyers will be eligible to receive $1,500 per month for six months in the event of a job loss; co-buyers are eligible to receive $750 per month.

To be eligible for coverage, the home must be a principle residence in California and a first-time buyer is defined as someone who has not purchased a home in the past three years. While there are no caps on the applicant's income or the purchase price of the home, the applicants are required to use a California Realtor in their transaction; they cannot be self-employed or older than age 70. Consumers can apply for the program via their Realtor.