California Mortgage Assistance If You Are Unemployed

If you are unemployed and struggling to pay your mortgage, you may qualify for help under California's Unemployment Mortgage Assistance Program.

California's Unemployment Mortgage Assistance Program provides temporary mortgage payment assistance to unemployed homeowners. Read on to get an overview of the program, learn how much assistance is available, and find out if you are eligible. (To learn about the other programs in Keep Your Home California, visit our  California Foreclosure Law Center.)

Keep Your Home California

In 2010, the U.S. Department of the Treasury created the Hardest Hit Fund to provide targeted aid to homeowners in those states most affected by the housing market crash. As part of this program, $7.6 billion in aid was allocated to the 18 states, along with Washington, DC, that experienced the most extreme home price declines and high unemployment rates as a result of the economic crisis. (Learn more about the  Hardest Hit Fund.)

Through the Hardest Hit Fund, California was awarded nearly $2 billion in funds to help eligible homeowners avoid foreclosures by way of four programs, which are collectively called “Keep Your Home California.” Each program provides a different type of financial assistance to low and moderate-income homeowners. The programs are:

  • The Unemployment Mortgage Assistance Program, which provides mortgage payment assistance to unemployed homeowners.
  • The Reverse Mortgage Assistance Pilot Program, which assists senior homeowners who have fallen behind on property expenses (such as property taxes, homeowner' insurance, and HOA dues or assessments) to reinstate past-due amounts and provide advances for upcoming property expenses.

The Unemployment Mortgage Assistance Program

The goal of the Unemployment Mortgage Assistance Program (UMA) is to help unemployed homeowners avoid foreclosure while they seek new employment. To do this, the program provides mortgage payment assistance in an amount equal to the lesser of:

  • $3,000 per month, or
  • 100% of the PITI (principal, interest, tax, insurance) and any escrowed homeowners' association dues or assessments.

Homeowners can receive benefits for up to 18 months.

How the UMA Program Works

UMA assistance is provided in the form of a non-recourse, non-interest bearing subordinate loan secured by a junior lien that is recorded against the property. After five years, the subordinate lien will be released. You need to repay the loan only if you sell the home for a profit or refinance (and take cash out) during that time.

Borrower Eligibility Criteria for UMA

To be eligible for UMA benefits, you must qualify as a low or moderate-income household based on all of the below criteria.

  • Your household income is 120% or less of the California State Department of Housing and Community Development (HCD) Area Median Income for a family of four in the county where you live. (The income limits are higher than you might guess. For example, the limit is $123,600 in San Francisco county and $91,100 in San Diego county. To find out the income limits in your county, go to Also, a homeowner is presumed to satisfy income limits if he or she has a loan financed in whole or in part by bonds that are tax-exempt under IRC section 143.
  • You recently encountered a financial hardship due to underemployment or unemployment.
  • You have completed and signed a Hardship Affidavit/3rd  Party Authorization documenting the reason for your hardship.
  • Your total monthly first-lien mortgage payment PITI (principal, interest, taxes, and insurance, as applicable) and escrowed homeowners' association dues or assessments must exceed 31% of your gross monthly household income, excluding temporary income (e.g., unemployment or short-term disability benefits).
  • You are currently receiving unemployment benefits. (This includes those whose unemployment benefits lapsed or expired within 30 days of the request for UMA assistance.) (Learn more about unemployment benefits at
  • You agree to provide all necessary documentation to satisfy program guidelines.

Home Eligibility Criteria for UMA

Additionally, your existing mortgage and the property securing that mortgage must meet the below criteria.

  • The current unpaid principal balance for the first-lien mortgage loan is $729,750 or less.
  • The home is not abandoned, vacant, or condemned.
  • The property is a single-family or one-to-four unit home that is owner-occupied.
  • The property is in California.
  • The property is your primary residence.

Mobile homes are eligible if they are permanently affixed to the real property that is secured by the first lien. (Learn more about  what happens if you are struggling to pay your mobile home loan.)

UMA Exclusions

You are not eligible to request assistance through UMA if one of the below conditions applies to you.

  • A Notice of Default (NOD) was recorded on the subject property more than 60 days prior to the date of request for UMA assistance. (Learn more about the  California foreclosure process.)
  • You filed bankruptcy and the bankruptcy is active. (If you previously filed bankruptcy and it was dismissed or you received a discharge, then you are eligible to apply for the program.)
  • You voluntarily resigned from your job.
  • You are in an active HAMP trial modification (unless the trial is cancelled).
  • You become fully re-employed at any time during the UMA benefit period.
  • You are actively being reviewed for a short sale, a deed in lieu and/or TAP benefits.
  • Your property is subject to a first priority lien securing a Home Equity Line of Credit.

For More Information

Go to  and click on “Unemployment Mortgage Assistance” or call 888-954-KEEP (5337) for more information.

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