The program offers a one time fee of up to $5,000 per hour hold that can be used to relocation assistance. Funds are intended to help home owners secure new housing and cover moving expenses such as security deposit and transition costs.
The federally funded program was developed to help homeowners who have suffered financial hardship. With the cooperation of some lenders, the Transition Assistance Program targets low-to-moderate income home owners.
The qualify for Transition Assistance Program, the homeowner has to meet the following criteria:
- Homeowner must sign a Hardship Affidavit and 3rd party authorization to document the hardship reasons.
- The program is tailored for first Mortgage amounts that do not exceed $729,750.00 of un-paid principal balance.
- The general eligibility is determined by CalHFA MAC on 1st come 1st serve basis.
- Home owners monthly mortgage payment (Principal, interest, taxes, and insurance) must exceed 31% of the owners GROSS monthly income.
- Home owners must be receiving Unemployment from California Employment Development Department (EDD).
- Mortgage should be at serious risk of imminent defaults as substantiated by the lender and home owners documentation.
- Not every Mortgage Servicer is participating in this program.
- The applicants must owner and occupy the Single Family Home or 1-4 unit home.
This program is a welcome relief to San Jose homeowners needing more time to recover from the challenging recession that appears to have much more staying power than most of us would like. And with anemic hiring that is continuing to hamper the recovery we anticipate this program will run out of money before long.
Combined with the Relocation Assistance that’s available on Short Sale, this could be just the incentive some homeowners need to move.
Contact Us if you need help applying for this program.