California Mortgage Relief Program was created to assist Homeowners who have fallen behind on their payments

Many homeowners across the state of California are finally finding relief from the nightmare caused by hardships created by the COVID-19 pandemic through the new California Mortgage Relief Program. The fund which has a pot of $1 Billion is giving eligible homeowners up to $80,000. For many homeowners who are deemed eligible through the program these funds will come as a grant and not a loan. 

When speaking of this program and its possibility to impact distressed homeowners, Senator Alex Padilla said, “[The California Mortgage Relief Program could] help upwards of 20,000, 30,000 and maybe even 40,000 homeowners in California.” The first step in helping homeowners is to get homeowners to apply at

The application process is straightforward and starts with a short questionnaire, which will then take you to the application. To make the process seamless gather the following documents before heading over to the program website:

  • Mortgage statement
  • Bank statements 
  • Utility bills 
  • Form of income documentation (like paystubs or tax returns)
  • Work out Option (In case of denial)
  • Letter from servicer and trustee regarding past due payment eligibility (If in active bankruptcy) 

In order to be eligible for the program, the California Housing Finance Authority requires that applicants fit the following criteria: 

  • Own, or reside in a single-family home, condo or permanently affixed manufactured home (housing unit) in California
  • Behind on at least two mortgage payments before the end of 2021.
  • Faced a COVID-19 pandemic-related financial hardship after Jan. 21, 2020.
  • Earning less than half of your county’s average household income (Area Median Income). You can check your county’s area median income on the California Mortgage Relief Program’s AMI Calculator.

Applicants must also meet at least one of the following requirements.

  • Receive public assistance
  • More than 40% of income goes to housing costs
  • Have no alternative workout option through mortgage servicer

If a homeowner is approved for the program, direct payment will be sent to their bank or mortgage servicer, then the servicer will apply the payment and the homeowner will be relieved of the cost.

If you think you might be eligible for the program, click here to check your eligibility and apply. Any additional questions can be answered by U.S. Housing and Urban Development certified housing counselors at 1-800-569-4287. The California Mortgage Relief Program can be reached at 1-888-840-2594. For emails, homeowners can expect a response within three business days at

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