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Offered by the California Association of Realtors - Housing Affordability Fund

Mortgage Protection Program

First Time Homebuyer Benefit for Californians

A Complete Guide to the

Broadview Mortgage Corporation

1-866-667-6724

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Frequently Asked Questions

• What is the Mortgage Protection Program?

• Who qualifies for this program?

• What is meant by Involuntary Unemployment?

• What are the waiting periods?

• Other answers to frequently asked questions– How much does it cost?– How do home buyers apply?– How long will this program last?– Can I upgrade my benefits or renew the coverage after one

year?

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What is the Mortgage Protection Program?

• Combination Involuntary unemployment, accidental disability and accidental death protection for first time home buyers

• California Association of REALTORS® program– Housing Affordability Fund– $1,000,000 committed to program

• Qualified first-time home buyer benefits– Up to $1,500 per month for up to six months if involuntarily

unemployed or accidental disability– Co-borrower $750 per month for up to six months if

involuntarily unemployed or accidental disability– One-time $10,000 accidental death benefit

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Who Qualifies for Mortgage Protection?

• Must be a first time home buyer who hasn’t owned a home in the last three years

• Open and close escrow between 4/2/2009 and 12/31/2009

• Purchase a primary residence in California

• Be represented by a California REALTOR®

• Be a W-2 employee (not self employed) but can not be a sole proprietor, partner or controlling stockholder in the business in which you are employed, or a dependent of a sole proprietor, partner or a controlling stockholder in the business in which you are employed

• No income or home price caps under this program

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What is Involuntary Unemployment?

• Under this plan, Involuntary Unemployment is defined as totally and continuously losing full-time employment as a result of:• A permanent involuntary termination of employment; or• An involuntary layoff or suspension of employment; or• An authorized, unionized strike or labor dispute by a

chartered or previously organized trade or labor union; or • A lockout, discharge of employees or temporary closing of

business in response to organized employee activity; or• A state or federally declared disaster caused by a

geological or weather-related natural event

• Involuntary Unemployment does NOT include • quitting, resigning, retiring expiration of an employment

contract, being fired for cause, or being on leave due to accident, sickness, disability , family obligations, childbirth, pregnancy, or due to scheduled seasonal or temporary breaks

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What are the Vesting and Waiting Periods?

• The insurance policy requires a “vesting” period of six (6) month before becoming eligible for benefits

• There is also a four (4) month “actively at work” requirement

• These two waiting/vesting periods can run concurrently

• There is no initial vesting period for Accidental Disability benefit however, four (4) month “Actively at Work” requirement still applies

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Other Frequently Asked Questions

• How much does this insurance policy cost?– Nothing, there is no cost to the homebuyer for the 1st year

• How do home buyers apply?– Must apply through a California REALTOR®. The

REALTOR® will submit the completed application to the CARHAF on the home buyer’s behalf.

• How long will this program last?– Applications will be reviewed and insurance policies will be

awarded on a first come, first serve basis until the program funds are depleted or until CARHAF discontinues the program, whichever occurs first.

• Can I upgrade my benefits or renew the coverage after one year?– Prior to the end of the first year, you may be given the

voluntary option to renew at a “contributory” rate, which may include the same benefit package or an enhanced package.

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Mortgage Protection Plan Take-Aways

• Make sure the Agent you hire to represent you in your home purchase is a member of the California Association of REALTORS®– Attend “Hiring a Real Estate Agent” web-class for help with

finding, interviewing and hiring experienced agents

• Must be a first time home buyer– Cannot have owned in past 3 years

• No income or purchase price limits

• Must close escrow on or before 12/31/2009

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www.REblueBird.org

Receive notification of upcomingFirst-Time Homebuyer Education Web Classes

Homebuyer classes sponsored by

Broadview Mortgage Corporation

1-866-667-6724

Some topics covered in no cost web classes:

What you must know about Hiring a Real Estate Agent and finding the best deals

How to find down payment assistance programs

Special loans for employees of public schools and community colleges

100% financing options for California public employees – CalPERS

A Complete Guide to Credit, qualifying and completing a loan application

Five 100% financing programs in California

A Complete Guide to Closing Costs and the Good Faith Estimate

A Complete Guide to buying Foreclosures and Short Sales