Homeowners whose homes were severely damaged or destroyed by the fires that scorched the Pacific Palisades and Altadena communities in January may qualify for up to $20,000 in mortgage relief.
On June 12, the state is launching the CalAssist Mortgage Fund, which provides grants to displaced homeowners whose homes are unlivable as a result of a disaster.
The CalAssist Mortgage Fund, managed by the California Housing Finance Agency, only recognizes disasters that received a state of emergency declaration by the state governor or major disaster declaration approved by the president of the United States between January 2023 and January 2025.
Either type of declaration were announced for this year’s Eaton and Palisades fires in Los Angeles, the 2024 Park fire in Butte, Tehama and Plumas counties, and the San Diego floods that occurred in 2024.
After a disaster, you are still responsible for paying your mortgage even if your home no longer exists or was damaged to the point of being unlivable, according to the Consumer Financial Protection Bureau.
If you are affected by a disaster, you may have the option to reduce or suspend your mortgage payments for up to 12 months, according to Fannie Mae, the Federal National Mortgage Assn. If you are placed on a forbearance plan, you will eventually have to pay what is owed once the plan expires.
How the mortgage relief can help you
The CalAssist Mortgage Fund can award you three months of mortgage payments, up to a maximum of $20,000.
The grant is paid directly to your mortgage service provider, but your provider must be participating in the program.
Mortgage service providers who participate in the program include:
- AM West Funding
- Arvest
- Assurance Financial Group
- Banc of California
- Bank of America
- BSI Financial
- Carrington Mortgage Services
- Cascade Financial Services
- Celink
- Chase
- Churchill Mortgage
- Clink n’Close Inc
- FCI Lender Services
- Freedom Mortgage
- Guild Mortgage
- Kinecta
- Loan Depot
- M&T Bank
- Midland Mortgage (MidFirst Bank)
- Mr. Cooper
- New American Funding Inc
- Patelco Credit Union
- PennyMac
- PNC Bank
- Provident Funding
- RoundPoint Mortgage
- Royal Pacific Funding
- San Diego Credit Union
- Select Porfolio Services (SPS)
- ServiceMac
- SN Servicing
- Statebridge Company
- Travis Credit Union
- Truist
- Valon Mortgage
- Vanderbuilt Mortgage
- Veterans United
- Wintrust Mortgage
If you are awarded a grant, it does not have to be repaid.
How you can apply for mortgage relief
On June 12 when the application window opens, you can apply by going to the CalAssist Mortgage Fund website and click “Apply Now” to fill out the online application.
The paperwork you’ll need to apply includes:
- A mortgage statement
- Bank statements
- A utility bill
- Homeowner insurance or FEMA claim
- Proof of income
Funds for the program are limited, according to the CalAssist Mortgage Fund website.
Applications will be reviewed in the order they are submitted.
It’s a first-come, first-serve offer. Once all funds are awarded, the program will close.
You can get updates on the program by signing up for email updates, located on the bottom of the CalAssist website.
What makes you eligible for the program
You may be eligible for the program if:
- Your primary residence was destroyed or is uninhabitable due to a qualified disaster that occurred between Jan. 1, 2023, and Jan. 8, 2025.
- You meet the program’s household income limits, which includes the combined income for all people named on the mortgage and/or the deed of trust. The household income limit varies by county, for example in Los Angeles County the income limit is $140,700; a complete list can be found online.
- You have a mortgage or a reverse mortgage.
- You own a single-family home, condo or permanently affixed manufactured home, which may include up to four units.
If you need assistance with preparing or completing your application, call the CalAssist Mortgage Fund for in-depth, one-on-one assistance at (800) 501-0019 from 8 a.m. to 5 p.m., Monday through Friday.
