Hi folks ,
Might as well make my first post a big one! I’ve been helping friends and family take advantage of the Keep Your Home California $100,000 principal reduction program .
It works by applying up to $100,000 of state Hardest Hit Fund money toward your mortgage , your loan servicer then recasts your mortgage based on the new reduced principal amount , so that you end up with a much lower payment .
Qualification is fairly simple and you can qualify even if you’re not underwater and not in default ! but it takes some legwork - you cannot apply online and need to work with a loan counselor . You must fit the program criteria , meaning your first mortgage , taxes and insurance must be greater than 38% of your income to demonstrate your financial hardship .
The $100,000 is structured as a silent zero interest lien on the property that has a portion forgiven at set intervals , until it’s completely forgiven . If you sell before its forgiven , you’ll need to repay the lien
If anyone has questions or had already benefitted from this program feel free to post . Remember the first step is making sure your income figures qualify then contacting a housing counselor that can be found from the KHY official website