California will help up to 40,000 homeowners catch up on their mortgage payments.
Gov. Gavin Newsom announced Monday the federal government approved his mortgage relief plan. California will use about $1 billion in federal money to help people who fell behind on their mortgage payments during the pandemic.
The program will pay past due housing payments in full, up to a maximum of $80,000 per household. The money would go directly to the banks or mortgage servicers.
Only people who own and occupy one property and make at or below 100% of their area median income will be eligible. The program covers single-family homes, condos and manufactured homes. Owners also must attest they have faced a pandemic-related financial hardship after Jan. 21, 2020.
California also has a program to pay people’s past due rent. So far, the state has paid $1.6 billion to more than 137,000 households.
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