Job Loss Protection
G6 Group and Long and Foster Offer Job Loss Protection
For more information, ask us a question here.
In this uncertain market there are a variety of factors that go into the decision about whether now’s the right time to buy.
That’s why the Buy Confident Plan now includes HELP (Homeowner Education and Loan Protection) from the Rainy Day Foundation. HELP offers six months of phone counseling and monthly educational e-newsletters. The HELP program also includes Job Loss Protection,that can assist buyers with their mortgage payments each month, for up to $1,800 per month for up to 6 months, in the event of involuntary unemployment.
It’s available on select Long & Foster listings and paid for by the seller, and it’s another reason to Buy Confident™. It all adds up to less financial stress. And more confidence.
Overview
The Job Loss Protection Program will provide up to six months of mortgage payments if the borrower (or co-borrower) becomes involuntarily unemployed.
This program provides mortgage payment coverage for up to six months during the first 24 months of the loan.
Within 30 to 45 days after you move into your new home, a packet will arrive that explains the unemployment coverage and how to handle a claim in the event of an involuntary job loss.
Program Benefits
- Up to six months of mortgage payments
- Coverage up to $1,800 per month
- Easy enrollment process
Eligibility
- Employed full time (minimum of 30 hours per week) at time of mortgage closing
- Vesting period is 60 days
- Cannot be self employed, an independent contractor, or active military
- Cannot own greater than 10% interest in his/her employer’s business
- Must be between the ages of 18 and 66 and reside in the U.S.
- Primary residence, secondary homes, and single unit investment properties
Coverage Period
Twenty four (24) months from the closing date of the mortgage.
Maximum Benefit
The lesser of the actual mortgage payment (PITI) or $1,800 per month.
Benefit Period
Up to a maximum of six (6) payments during the twenty four (24) month coverage term.
Vesting Period
Sixty (60) days from mortgage closing date (if purchaser becomes unemployed during this Vesting Period, there is no coverage for this occurrence of unemployment).
Waiting Period
Thirty (30) days from commencement of unemployment.
Contribution Clause
When joint mortgagors are involved, benefit amount will be based on the percentage the unemployed person’s income is to total qualifying income at the time of mortgage closing.
Conditions
1. Unemployment must commence during coverage period
2. Coverage is limited to payments due 30 days after unemployment begins
3. Claimant must qualify for state unemployment benefits
4. Claims payments cease immediately upon re-employment
5. In the event of subsequent unemployment, a new 30 day Waiting Period applies
Exclusions
1. Voluntary unemployment
2. Disability or medical (mental or physical)
3. Reasons listed for denial of unemployment benefits
4. Borrowers that are self-employed or are aware of a pending layoff
5. Strike/Lockout
The involuntary unemployment insurance included in the Rainy Day HELP Program is provided and underwritten by Virginia Surety Company, Inc. under group insurance policy IUI-POL (11-05). Exclusions and limitations apply. See the Certificate of Insurance and Schedule of Coverage for complete details. The Rainy Day Foundation’s HELP Program is void where prohibited by law and subject to cancellation without further notice. Certain restrictions apply. While Long & Foster believes this Program could be of significant benefit to many homebuyers, each homebuyer must thoroughly review the details of the Program to determine its benefits and their eligibility. This overview is not intended to be an exhaustive description. For eligibility requirements and full program details, please contact the Rainy Day Foundation at 1-888-26-RAINY.
