How to Get Job Loss Mortgage Protection
Job loss mortgage protection offers a practical solution to first time buyers who may be experiencing anxiety about purchasing a home in these uncertain economic times. The fear of layoff and worry about lengthened unemployment are keeping many qualified home buyers from taking advantage of low home mortgage interest rates and a teeming housing market. Even so, many lenders are offering mortgage payment protection to qualified buyers who experience a job loss within the first two years after purchasing a home. If you are in the market for a home and are looking for the best mortgage protection, here's important information you need to know about eligibility for job loss mortgage protection plans.
- Difficulty:
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Instructions
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Job loss mortgage protection differs by mortgage lender, seller, builder and the state where you are purchasing the home. To determine if a job loss mortgage protection plan is applicable to your home purchase, do online research of the following:
a) Who is offering job loss protection-lender, real estate broker, seller, builder or another party? Does the borrower have a choice to purchase or is it required in order to get a mortgage? What is the enrollment process?
b) How much does job loss mortgage protection cost? Are there any FREE mortgage payment protection plans available as part of the home purchase?
c) Is the coverage available for more than one home or investment properties?
d) In the event of a job loss, how is mortgage payment protection accessed? Who receives the payments-the lender or borrower? -
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Most job loss mortgage protection plans pay eligible home buyers up to $1,800 per month for six months in the event of an involuntary job loss. However, there are some mortgage payment protection plans that pay as little as $1,200 or up to $2,500 per month, and may extend the payment period up to 12 months.
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To be eligible for job loss mortgage protection you must meet the following criteria.
a) The home purchase itself must offer job loss mortgage protection. Not every home purchase may qualify.
b) In most cases you must be a first-time home buyer who is regularly employed 30 or more hours per week. Unfortunately, self-employed, military and contract workers are not eligible for job loss mortgage protection.
c) In the event of a job loss, you must be eligible to receive unemployment compensation.
d) All qualified borrowers may receive coverage within the mortgage protection plan coverage limits and the amount of the mortgage payment. -
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In addition to online research, ask your real estate broker, the seller and mortgage lender about mortgage payment protection BEFORE signing any contracts, advancing deposits or applying for a mortgage.
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Tips & Warnings
Buying a home is an important decision; so make sure to research and investigate all options to get the best mortgage protection available.
