Federally funded program, Keep your Home California, is granting a limited number of underwater homeowners a principal reduction of up to $100,000 on Fannie Mae and Freddie Mac loans.
- Owner occupants. This means it must be your primary residence.
- Low to Moderate income households
- Owe more than the home is worth and be delinquent on payments due to significant hardship.
- The balance on the first mortgage cannot exceed $729,750. Other rules apply, but there is no asset limitation. The maximum reduction is $100,000 per homeowner
- If the homeowner sells or refi’s for a profit within 5 years, the proceeds must be used to repay the loan. After 5 years, no repayment is required.
**For more information on the Keep Your Home programs, visit http://keepyourhomecalifornia.org/.
Kerry Ann Moore, The Keith Byrd Team, San Luis Obispo Realtor, 805-540-4040