C.A.R. launches mortgage protection plan for first-time home buyers
The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) today launched the C.A.R. Housing Affordability Fund Mortgage Protection Program (C.A.R.H.A.F. MPP), for first-time home buyers.

Through the Housing Affordability Fund Mortgage Protection Program, first-time home buyers who lose their jobs due to layoffs may be eligible to receive $1,500 per month, for six months, to help make their mortgage payments. A qualified co-buyer also can participate in the program, and receive a monthly benefit of $750 per month for up to six months. Program benefits also include coverage for accidental disability and a $10,000 death benefit.

C.A.R.’s Housing Affordability Fund is dedicating $1 million toward its Mortgage Protection Program, and estimates that as many as 3,000 families will benefit from the program this year.

To qualify for the Mortgage Protection Program, applicants must:

· Be a first-time home buyer – someone who has not owned a home in three

or more 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®.

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From the $789 billion economic stimulus package, first time home buyers will receive an improved, non-repayable version of last year’s repayable $7,500 tax credit. The $8,000.00 credit eligibility has been extended to September 1st, instead of June 30th.

According to the National Association of Realtors, the tax credit should generate about 500,000 more home sales this year, whether they’re moving out or possibly moving to a bigger house.

The tax credit should also help generate more economic stimulation. Realtors’ forecast additional spending of about $60,000 for every house sold, triggering a “ripple effect” or other purchases and payments, such as furnishings, appliances, remodeling, repairs, real estate commissions, moving expenses, and similar costs.

The stimulus package also has even more incentives and benefits for home owners. Everything  from energy efficient heating and air conditioning, windows, doors, and insulation will apply towards the tax credits and will be extended  through 2010

Of course, another program in the package should also help generate an economic effect within neighborhoods that have numerous foreclosures.

This bill provides up to two billion dollars to buy, renovate, and rent out or resell  foreclosed and vacant homes.

The money generated will go to the local governments, however the actual rehabilitation, rental and resales work will go to people in the private sector.

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