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In 2020’s second quarter, the mortgage delinquency rate hit a new high of 8.22%.¹ Many people were unable to meet their mortgage repayments following the pandemic. After losing their incomes following the closure of their tourism business, John Finder and his wife resolved to seek help.

They decided to call their lender and ask for forbearance which was granted for 3 months. However, they were required to pay back a lump sum amount for four months to keep their loan up to date after forbearance. Failure to pay in full, they would go into foreclosure, warned their lender. 

Are you in forbearance or risking foreclosure? Read on for details about the California mortgage relief.

A Guide To The California Mortgage Relief Program

Understanding what the program is about and how it works can help you in your mortgage repayments. Below is everything you need to know.

What Is The California Mortgage Relief Program? 

California mortgage relief is a grant program started by the federal government to cushion homeowners who have fallen behind their repayments due to covid-related constraints. Subsequently, the program is free and you can qualify for up to $80,000 of the 1 billion dollars available.

If you qualify, the money will be paid directly to your lender. The program is expected to up to 2025 or until the funds get exhausted. Thus, if you are in a tight spot like John Finder above, this program might be the solution you need.

Who Is Eligible For The Program?

As an applicant, you are required to meet the following requirements

  • You must own and live in a single-family home, permanently affixed manufactured home, or condo in California. The home should not be business owned.
  • You must have fallen behind at least two payments before December 2021
  • You must have encountered covid related financial constraints as from Jan 21, 2020
  • You earn less than half of your county’s area median income. You can check your county’s median income through the program’s AMI calculator.

You should also meet any one of the below options

  • You must be receiving public assistance
  • Above 40% of your income is housing costs
  • You have no other option with your lender

How To Apply For The Program

You can apply for the program either through the Housing Is Key website. Subsequently, the application process begins with a set of questions to test if you meet the eligibility criteria. 

If you are eligible, proceed to apply for the funds. At this point, you will need some documents including bank statements, mortgage statements, and income from every household member like pay stubs and tax returns. 

You will also need an affidavit proving financial difficulties, a social security number, California ID, and a disclosure form.

Get Mortgage Assistance With The California Mortgage Relief Program

Nearing the end of your forbearance period and unsure what to do? There is still hope. In fact, 93% of homeowners still have 10% equity in their homes even after 18 missed payments.² The above program will help you update your payments if you get it.


“About Mountain West Financial and the CalPATH Home Loan Program

Mountain West Financial is the exclusive lender offering CalPATH, the #1 home loan program for Teachers, Police Officers, Firefighters, and other public employees who serve our local California communities.

You may contact our CalPATH Hotline @ 800-310-7577, seven days a week from (8:30 am to 8:00 pm) or visit our website @ A CalPATH advisor will be standing by to answer (any & all) questions you may have about the home buying or refinance process.

We look forward to working with you soon!


Joe Moore

CalPATH Division Manager

NMLS #333648″


Links To Sources Used

  1. Mortgage delinquency spike
  2. Forbearance stats