California has already sent two stimulus checks this year, and now, it is preparing to send one more stimulus payment but to a targeted group. The authorities, this time, will send out homeowners coronavirus stimulus checks. These stimulus checks are the result of the U.S. Treasury Department recently approving California’s plan to offer $1 billion in mortgage relief grants to homeowners.
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Governor Gavin Newsom proposed the California Mortgage Relief Program to support about 20,000 to 40,000 homeowners who are struggling to meet their mortgage commitment because of the COVID-19 pandemic. Funding for the program comes from President Biden’s American Rescue Plan Act’s Homeowner Assistance Fund.
These homeowners coronavirus stimulus checks will be a one-time grant and would specifically go to socially disadvantaged and underserved communities. The mortgage program would help to cover the past due housing payments of the recipients.
“Our Housing is Key program has already provided renters and landlords with the assistance and resources they need to stay afloat. Now, with our California Mortgage Relief Program, we are extending that relief to homeowners,” Newsom said in a statement.
People living in California at or below 100% of their county’s area median income are eligible to apply for the grant. Also, the applicants must own a single-family home, condo or manufactured home. Moreover, they should have faced a pandemic-related financial hardship after January 21, 2020.
There are also a few more qualifications: applicants must be receiving public assistance, be severely housing burdened and are unable to work out alternative mortgage options with their servicer.
California Mortgage Relief Program: How To Apply
Interested applicants will be able to apply for the California Mortgage Relief Program through an online portal at CaMortgageRelieft.org. The portal will soon start accepting the applications. Until then, you can visit the website to get more information on the eligibility and program.
To ensure you don’t face any issues with the application process, you should have the following documents ready: mortgage statement, utility bills, income proof (tax returns or unemployment documents and more), and bank statements.
Eligible recipients could get up to $80,000 in the grant. The payment would be made directly to the qualified homeowners’ mortgage lender.
Separately, California continues to send money to the eligible recipients under the Golden State Stimulus II checks. In the latest batch, the authorities will be sending over 800,000 stimulus checks amounting to about $575 million. This includes about 9,000 direct deposits, and the rest would be paper checks.
The authorities will continue to mail the paper checks through December 3. Payments have been going out since October and will continue into the new year as well. The payment schedule is based on zip codes. Thus, the last batch, scheduled between December 27 and January 11, will go to those with a zip code ending in 928-999.