Sternberg Law Group


Keep Your Home Mortgage Assistance Program

21 May 2024 | Mortgage

Keep Your Home California is a free mortgage assistance program for homeowners who are struggling with their payments due to financial hardship. The program is funded by the U.S. Department of the Treasury and administered by the California Housing Finance Agency (CalHFA). Its primary goal is to help low-to-moderate-income homeowners stay in their homes by providing financial assistance to reduce mortgage debt and make monthly payments more affordable.

Table of Contents

  1. How Does the Program Work?
  2. Eligibility Requirements
  3. Types of Financial Assistance
  4. The Application Process
  5. Success Stories from the Program
  6. Where to Get More Information

1. How Does the Program Work?

Keep Your Home California works by providing eligible homeowners with financial assistance to modify or refinance their mortgages. The program contributes funds to lower the principal balance of the mortgage, reduce the interest rate, or cover arrearages and fees. This allows homeowners to secure a more affordable monthly payment and avoid foreclosure. The program does not need to be repaid if the homeowner remains in the home for a specified period.

2. Eligibility Requirements

To be eligible for Keep Your Home California, homeowners must meet certain requirements. They must be experiencing a financial hardship, such as unemployment, reduced income, or increased expenses, that is impairing their ability to make mortgage payments. The mortgage must be a first lien on the primary residence in California, and the homeowner’s income cannot exceed program limits, which vary by county. The program prioritizes homeowners with the greatest need, as measured by the ratio of mortgage debt to income.

3. Types of Financial Assistance

Keep Your Home California offers several types of financial assistance to homeowners. The Principal Reduction Program provides funds to reduce the principal balance of the mortgage, lowering the monthly payment. The Unemployment Assistance Program offers temporary mortgage payment assistance to unemployed homeowners while they seek new employment. The Transition Assistance Program provides relocation assistance to homeowners who complete a short sale or deed-in-lieu of foreclosure. The Mortgage Reinstatement Program helps homeowners catch up on back payments and reinstate their mortgages.

4. The Application Process

Homeowners interested in Keep Your Home California should start by contacting a participating counseling agency approved by the U.S. Department of Housing and Urban Development (HUD). These agencies can assess the homeowner’s eligibility, provide guidance on the application process, and submit the application on their behalf. The application requires documentation of income, expenses, mortgage statements, and evidence of financial hardship. Once submitted, the application will be reviewed, and the homeowner will be notified if approved.

5. Success Stories from the Program

Since its inception, Keep Your Home California has provided billions of dollars in assistance to tens of thousands of homeowners. Many have been able to modify their mortgages, reduce their payments, and avoid foreclosure thanks to the program. Homeowners have reported feeling a huge sense of relief and stability, knowing they can remain in their homes. The program has also helped to stabilize communities by preventing foreclosures, which can lower property values and contribute to neighborhood blight.

6. Where to Get More Information

Homeowners interested in Keep Your Home California can visit the program’s website at The website provides detailed information on eligibility, types of assistance, and the application process. Homeowners can also call the program’s toll-free hotline at 888-954-KEEP (5337) to speak with a representative. Additionally, homeowners can contact a HUD-approved counseling agency in their area for personalized guidance and assistance with the application process.