Huge Benefit for California First Time Home Buyer


by Roberta Murphy

First time home buyerThe timing for the California first time home buyer couldn’t be better.

Not only does the first time home buyer have the benefit of the $8000 federal tax credit–and up to $10,000 in California state tax credits if buying a new home–but they now have additional unemployment insurance if they purchase a home a home though a licensed California Realtor.

This letter just arrived from the California Association of Realtors. San Diego first time home buyers should rejoice:

I am very pleased to announce that this Thursday, April 2, C.A.R. will launch a new program designed to provide peace of mind to first-time buyers who are hesitant to enter the housing market due to concerns about potential job loss, and subsequently being unable to meet their monthly mortgage obligations.

Through the C.A.R. Housing Affordability Fund Mortgage Protection Program (C.A.R.H.A.F. MPP), first-time home buyers who lose their jobs due to layoffs may be eligible to receive up to $1,500 per month for up to six months to help make their mortgage payments. A qualified co-buyer also can participate in the program, for a reduced monthly benefit of $750 per month for up to six months in the event of a job loss. Program benefits also include coverage for accidental disability and a $10,000 death benefit. C.A.R.’s Housing Affordability Fund is dedicating $1 million to the program this year, and estimates that as many as 3,000 families will benefit from the program throughout 2009.

To qualify for the Mortgage Protection Program, applicants must:
. Be a first-time home buyer – someone who has not owned a home in the last three years
. Open escrow April 2, 2009, or later, and close on or before Dec. 31, 2009
. Use a California REALTOR® in the transaction
. Purchase the property in California
. Be a W-2 employee (cannot be self-employed or military personnel)

First-time home buyers must request an application for the H.A.F. Mortgage Protection Program from their REALTOR®. For applications and other information on this exciting new program, go to or contact Monica Rodriguez at (213) 739-8380 or

The Mortgage Protection Program is a proactive approach by C.A.R. to address consumers’ concerns about the real estate market and their ability to make their mortgage payments should they loose their jobs. I encourage you to take full advantage of this new program by sharing information about the C.A.R.H.A.F. Mortgage Protection Program with your clients. There is no cost to either you or your clients to participate.


James Liptak
2009 C.A.R. President

For additional information, call 877-818-8197–and start your San Diego home search today!

8 responses to “Huge Benefit for California First Time Home Buyer

  1. Questions to ask yourself if it is better to rent or buy in your situation. Do you need the flexibility of renting? or can you afford to stay in your home for at least 5 years or longer?

    * Can you afford a 20% down payment?
    * Can you afford a monthly payment on a 30-year fixed mortgage?
    * ask your CPA … Does the tax benefit of home ownership offset a potential decline in home value?
    * Have you reduced other real estate debt before you add more on this home purchase?
    * Does a fixed monthly mortgage payment for the next 15 years outweigh the likely inflation of rents during that same time (called an inflation hedge)

    These are broad questions that can have many variations for each individual situation. However, it is a good foundation from which to start your home buying process.

  2. Thanks for the information Murphy, I appreciate it. Will be back again, keep posts like this one coming.


  3. Gerwin: Renting a home in San Diego often makes more sense than buying–especially if reasonable mortgage financing is not available (we are now hearing some horror stories about rent-to-own scenarios).

  4. Indeed are a lot of benefits for who buy a new home,but i want to know how many really buy.

  5. Unfortunately, real estate sales seem to be stagnate all over the world these days. It sounds like there may be an increase in sales for real estate agents over there, I am sure that will be very welcome after what many agents have been through.

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