Keep Your Home California defines “cash out” as monies disbursed to the borrower, or paid to a third party for the benefit of the borrower (e.g., debt consolidation, home improvement, tuition, etc.), when the combined amount of those disbursements exceeds 1% of the new loan amount. Reasonable and customary costs associated with refinancing (e.g., appraisal, processing feeds, title insurance, origination fees, etc.) may be financed in the loan and are not considered “cash out.”

Looking back at the flood of foreclosures since the housing crash, it’s clear that many borrowers didn't fully understand the terms of the mortgages they signed. According to one study, 35 percent of ARM borrowers did not know if there was a cap on how much their interest rate could rise [source: Pence]. This is why it’s essential to understand the terms of your mortgage, particularly the pitfalls of “nontraditional” loans.

Community Action Agencies are private and public nonprofit organizations. The main goal of a CAA is to help people achieve self-sufficiency. Each CAA is governed locally and features different programs. The organizations work directly with state and local government assistance programs and charities. According to the Community Action Partnership, 94 percent of CAAs provide referrals for assistance and 91 percent provide emergency services, including food banks and homeless prevention. Assistance is generally available only to low-income families and individuals.

Learn about a federal government program, Hope for Homeowners, that is offered through the Federal Housing Authority (FHA). It will help hundreds of thousands of lower income homeowners pay or refinance their mortgages (including subprime). Some forms of help may even be available if the value of your home has significantly declined and if your loan is “underwater”. Continue with Hope for Homeowners.


A married couple may decide to get a reverse mortgage but leave one spouse off the HECM. If the borrowing spouse dies or moves out permanently, a non-borrowing spouse can continue to live in the home as long as he or she is listed in the HECM documents as such. The surviving spouse must maintain the home and pay taxes and insurance as long as he or she continues to live in the home, and will not receive any of the reverse mortgage proceeds.
The lease/buy back: Homeowners are deceived into signing over the deed to their home to a scam artist who tells them they will be able to remain in the house as a renter and eventually buy it back. Usually, the terms of this scheme are so demanding that the buy-back becomes impossible, the homeowner gets evicted, and the “rescuer” walks off with most or all of the equity.
There are thousands of non-profit housing counseling agencies that are certified by the U.S. Department of Housing and Urban Development (HUD). Counselors will work with homeowners to help them prevent a foreclosure or get back on track with paying their mortgage. Most of the services are free for struggling homeowners. Get more details on HUD housing counseling agencies.
Keep Your Home California sends a Notice of Monthly Benefit Disbursement to homeowners with each monthly disbursement. The notice includes the date and the amount of the benefit that was disbursed to the servicer. Homeowners must have an email address on file with KYHC to receive this automated notice. If you want to receive an automated notice each month, send a request to umanotice@kyhca.org. Be sure to click here to provide an email address, first/last name, Homeowner ID number specify that you are requesting  and request a Notice of Monthly Benefit Disbursement.
The key takeaway: ask specific questions. See how each lender goes about the process of closing a loan and find out what additional fees you will have to pay. Asking questions is also a great way to gain insight into the lender’s level of professionalism and communication skills. Remember, you’ll be sharing a lot of personal information and placing a lot of trust in this person. Do your due diligence and you're certain to find the best mortgage lender.
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Hybrid Adjustable Rate Mortgages (ARMs): Mortgages that have fixed payments for a few years, and then turn into adjustable loans. Some are called 2/28 or 3/27 hybrid ARMs: the first number refers to the years the loan has a fixed rate and the second number refers to the years the loan has an adjustable rate. Others are 5/1 or 3/1 hybrid ARMs: the first number refers to the years the loan has a fixed rate, and the second number refers to how often the rate changes. In a 3/1 hybrid ARM, for example, the interest rate is fixed for three years, then adjusts every year thereafter.
National policy favors homebuyers via the tax code (although less than it previously did). For many families the right home purchase is the best way to build an asset for their retirement nest egg. Also, if you can refrain from cash-out refinancing, the home you buy at age 30 with a 30-year fixed rate mortgage will be fully paid off by the time you reach normal retirement age, giving you a low-cost place to live when your earnings taper off.
There are numerous mortgage delinquency solutions and programs that you and your lender can review. When it comes down to it, the only thing that can stop a foreclosure from occurring will depend upon what you can afford to pay and what your bank will agree to accept. This will be based upon, among other things, your total household income and expenses, what other assets and resources you have available to you, the amount you are behind on your mortgage payments, the type of loan, and other factors. First, you need to understand the foreclosure process. Then explore some of options and resources that can provide you with mortgage help. The final objective of this entire process is to help you stop a foreclosure from occurring. Some of the various steps to take include the following.
Yes, if a homeowner lists their home for sale during the Unemployment Mortgage Assistance benefit assistance period, they are required to immediately notify the Keep Your Home California program of this change of circumstance. If during the benefit period of the Unemployment Mortgage Assistance program it is determined that your home is listed for sale or you are actively negotiating a Short Sale or Deed in Lieu of foreclosure with their Servicer, Keep Your Home California reserves the right to terminate benefit assistance. Homeowners should call (888) 953-3722, Monday – Friday 8 a.m. to 5 p.m.

Yes, if a homeowner lists their home for sale during the Unemployment Mortgage Assistance benefit assistance period, they are required to immediately notify the Keep Your Home California program of this change of circumstance. If during the benefit period of the Unemployment Mortgage Assistance program it is determined that your home is listed for sale or you are actively negotiating a Short Sale or Deed in Lieu of foreclosure with their Servicer, Keep Your Home California reserves the right to terminate benefit assistance. Homeowners should call (888) 953-3722, Monday – Friday 8 a.m. to 5 p.m.
The good news for today’s FHA borrowers is that roughly 3,000 zip codes got a 7-percent hike in FHA loan limits this year. Now homebuyers can borrow up to $314,827, an increase from last year’s $294,515. In more costly areas, loan limits rose to $726,525 from $679,650. These higher limits offer buyers access to a bigger piece of the market, especially as home prices continue to climb upwards.
While some agencies limit their counseling services to homeowners with FHA mortgages, many others offer free help to any homeowner who is having trouble making mortgage payments. Call the local office of the U.S. Department of Housing and Urban Development or the housing authority in your state, city, or county for help in finding a legitimate housing counseling agency nearby. Or consider contacting the Homeownership Preservation Foundation (HPF); 888-995-HOPE. HPF is a nonprofit organization that partners with mortgage companies, local governments, and other organizations to help consumers get loan modifications and prevent foreclosures.
NOTE: These programs are only available to homeowners whose mortgage servicing company agrees to the terms and conditions governing the use of these funds. If your servicer is not currently participating in Keep Your Home California, you may want to call them and encourage them to do so. A homeowner cannot receive assistance if their servicer has not signed an agreement with CalHFA MAC. See a list of participating servicers and which programs they are currently offering.
“Now is the time to start the process. More than 75 percent of credit reports are said to have some incorrect data. Often a difference of two points in your credit score can make a drastic difference in your interest rate and/or loan fees. Making sure you are prepared from a credit standpoint is the most important part of the process. Secondly, make sure you are staying current on all your liabilities. And lastly, when you sit down with us, you will know you are with an industry leader in Movement Mortgage. We love and value people here at Movement.  It shows in how we take care of you while guiding you through the process.”–Bodie Shepherd, Market Leader, Chico, CA
To qualify you for a conventional loan, your lender will consider whether you have stable and reliable income. It may require copies of paystubs, W-2s, income tax returns and other documentation to make an assessment. Frequently changing jobs will not necessarily disqualify you for a conventional mortgage, if you can show that you’ve earned a consistent and predictable income.

When you apply for a mortgage, you will need to provide your lender with a number of financial documents. Having these documents already assembled will help accelerate the processing of your loan application. At a minimum, you should be prepared to provide your last two pay stubs, your most recent W-2, your last two years of tax returns, and current bank and brokerage statements.
A 30-year fixed-rate mortgage is also called a conventional rate mortgage. The rate that you see when mortgage rates are advertised is typically a 30-year fixed rate. The loan lasts for 30 years and the interest rate is the same—or fixed—for the life of the loan.  The longer timeframe also results in a lower monthly payment compared to mortgages with 10- or 15-year terms.
Find information on the Home Affordable Foreclosure Alternatives (HAFA) program, which is the new federal government short sale program. This is a plan created by the Obama administration that provides financial incentives to both homeowners and lenders. It both encourages the parties to use short sale process by providing financial aid to banks and homeowners, and it also simplifies the process. Find more on the short sale program from HAFA.
PLEASE READ: It is important to note that Keep Your Home California has no role in the loan modification process and no influence on a Servicer’s decision to approve or decline such a request. The process of obtaining a loan modification during the period of Unemployment Mortgage Assistance Program benefits is completely between the homeowner and their Servicer. The Servicer may have policies that affect the homeowner’s ability to receive a loan modification while receiving Keep Your Home California unemployment benefit assistance.
You can find a lender on Zillow to learn how much you can borrow. And you can use Zillow’s affordability calculator to estimate what you can afford.  But you should go a step further and figure out what you can be comfortable with. Is travel a passion? Do you like spending a fair amount on dining out or other entertainment? The lender won’t factor biannual vacations or a craving for high-end restaurants into their calculations, so you have to. Fortunately, that’s easy enough with tools that help you calculate your monthly payment as well as estimate what you should be able to afford given your existing income and debts. Chances are, even after the sub-prime crisis, a lender will be willing to offer you a bigger mortgage than you think you can afford. Only you can know how much you are willing to set aside for a mortgage payment each month.
You don’t need a zero balance on your credit cards to qualify for a mortgage loan. However, the less you owe your creditors, the better. Your debts determine if you can get a mortgage, as well as how much you can acquire from a lender. Lenders evaluate your debt-to-income ratio before approving the mortgage. If you have a high debt ratio because you’re carrying a lot of credit card debt , the lender can turn down your request or offer a lower mortgage. This is because your entire monthly debt payments — including the mortgage – shouldn’t exceed 36% of your gross monthly income. However, paying down your consumer debt before completing an application lowers your debt-to-income ratio and can help you acquire a better mortgage rate.
Fannie Mae and Freddie Mac, which are now owned by the federal government, are providing mortgage help to hundreds of thousands of homeowners from a few different programs. Since they are responsible for and service the vast majority of mortgages that are issued by hundreds of banks, many people will qualify for help from them and may not even realize it. Find the various Fannie and Freddie Mac mortgage programs.
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