Rainy Day Offers Insurance To Pay Mortgage If You Lose Your Job
Washington D.C.-based nonprofit called Rainy Day Foundation offers something special to new home owners, a promise to pay your mortgage if you happen to lose your job within 2 years of a home purchase.
The policy offers the unemployed worker as much as $1800 for up to six months, for a total of $10,800. This is to be applied to the home owners Mortgage, Taxes, and Insurance.
The Rainy Day coverage lasts only two years and doesn’t take effect until 60 days after the loan closes. Rainy Day Foundation said its program, which is available to other lenders, gained attention as the unemployment rate soared in the last half of 2008.
Rainy Day charges lenders $500 to $600 per loan for the coverage and requires the lenders it works with to offer the guarantee to all buyers, who choose whether to accept it or not. Homebuyers in the program agree to participate in a counseling program as part of the coverage. After the coverage period ends, buyers can extend it, but then must pay the fee themselves.
