Keep Your Home California expands Unemployment Mortgage Assistance Program to 18 months

California’s economy continues to improve, with a declining jobless rate thanks to some fast-paced hiring in several industries, especially by high-tech firms in the Bay Area.

But for many Californians, finding a job remains a long, difficult struggle.

In an effort to help homeowners who are unemployed long-term, Keep Your Home California has expanded its Unemployment Mortgage Assistance Program from 12 months to 18 months.

Under the change, out-of work homeowners eligible for jobless benefits from the Employment Development Department can receive as much as $3,000 per month for a maximum of 18 months – or a total of $54,000. Previously, the limit was $36,000.

KYHC Home Loan photo

The Unemployment Mortgage Assistance Program – easily the most utilized Keep Your Home California program – is designed to help financially strapped homeowners with their mortgage payments while they look for work.

Homeowners currently enrolled in the Unemployment Mortgage Assistance Program can have their eligibility extended to 18 months, while those who were previously part of the program may also be eligible for additional benefits if they still meet requirements. Homeowners are encouraged to contact Keep Your Home California for more information at 888-954-5337.

Keep Your Home California officials carefully considered the decision to expand the free mortgage-assistance program and after reviewing numerous data, there was clear evidence to prompt the move.

For example, there were 1.35 million people in the state unemployed in October, the equivalent of everyone in San Diego, according to the EDD. And more than one of every three of those unemployed people has been without work for at least 27 weeks, considered long-term unemployment.

Eight of the state’s 58 counties – and their residents – are still enduring double-digit jobless rates, including almost 24 percent in Imperial County. And 33 counties have an unemployment rate above the statewide average of 7.3 percent.

Certainly, California’s economy has made some serious gains following the Great Recession, but clearly more job-growth is necessary, especially in the hardest-hit areas of the state such as the Inland Empire and the San Joaquin Valley.

The expansion of the Unemployment Mortgage Assistance Program will help homeowners and the communities where they live.

The Unemployment Mortgage Assistance Program is one of four programs through Keep Your Home California:

  • Principal Reduction Program: Homeowners who owe more than their home is worth can cut their mortgage principal as much as $100,000 while saving hundreds of dollars every month. Homeowners approved for the program enjoyed an average savings of almost 20 percent on their monthly payments, from $1,523 to $1,229 during the third quarter.
  • Mortgage Reinstatement Assistance Program: Homeowners who are behind two months or more on their payments could receive as much as $25,000 to help them “catch up” on their past-due mortgage payments. Homeowners must have recovered from their financial hardship and be able to make their mortgage payments going forward in order to be eligible for the program.
  • Transition Assistance Program: Homeowners who have reached an agreement for a deed-in-lieu of foreclosure or short sale with their mortgage servicer could receive up to $5,000 in relocation assistance.

In order to qualify for Keep Your Home California, homeowners must meet program eligibility requirements, including having suffered a financial hardship – such as a job loss, cut in pay, a divorce, death or extraordinary medical benefits. Homeowners with a loan-to-value ratio of 120% or greater could meet the qualified hardship requirement under the Principal Reduction Program.

Also, homeowners must meet county-by-county income requirements, and their mortgage servicer must participate in Keep Your Home California. Currently, more than 200 servicers are enrolled in the program, including Bank of America, Wells Fargo, Chase and several other large servicers. To check the complete list of mortgage servicers enrolled in the program, visit

If you would like more information or want to apply for Keep Your Home California, call 888-954-KEEP (5337) or visit (those more comfortable speaking Spanish should visit The counseling center is open 7 a.m. to 7 p.m. weekdays and 9 a.m. to 3 p.m. Saturdays. Translators are available, so counseling sessions can be conducted in virtually any language.

Image courtesy of Stuart Miles at


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