Governor Newsom announces major expansion of mortgage relief program, with a four-fold increase in payments to survivors

The expansion responds to feedback and concerns from homeowners seeking to rebuild and adds to the Governor’s work to help provide LA firestorm survivors with financial recovery. 

The Governor is continuing the state’s efforts to support survivors as the Trump administration turns its back on them by withholding disaster aid.

In the last few months alone, the Governor has announced additional agreements with lenders to offer forbearance to homeowners and the intention to create a new financing program to help survivors bridge the gap between insurance payouts and the cost of rebuilding.

One year of mortgage relief, up to $100K

Under the expanded program, eligible homeowners may receive 12 months of mortgage payments, paid directly to their mortgage servicers. This is a fourfold increase of the program, which previously offered three months of relief. Assistance is available to homeowners who are current on their mortgage, in forbearance, or behind on payments. Families who previously received three months of assistance will be offered additional support, bringing total assistance to a full year.

In addition, the program will now cover up to $100,000 in payments, up from $20,000. This will allow families to take full advantage of the 12-month expansion, offering families major financial relief when they need it most, allowing them to focus their own funds on basic needs, alternative housing, and rebuilding.

“This expansion is about lifting weight off families who have lost so much,” said Rebecca Franklin, CalHFA Chief Deputy Director. “The timing here is critical. Many families affected by the LA fires have been on forbearance for a year now and haven’t made a mortgage payment since the fires started. By offering a full year of mortgage assistance and expanding income eligibility, we’re making it clear that this support is real, available, and intended for families who are still recovering.”

So far, the state has paid $6.5M to 793 recipients of recent natural disasters – the vast majority of which are survivors of the Palisades and Eaton fires. Significant funding remains to help survivors, including those who may need continued relief when forbearance ends.

Updated income eligibility

The funding is now available to even more survivors. Income limits have increased, so more families can qualify for help. 

In Los Angeles County, households with a combined annual income of up to $281,400 now qualify. This reflects a $70,000 increase from the previous limit. Income limits vary by county, in places like Butte County, income limits are now $255,000. A full list of income eligibility by county can be found here.

The CalAssist Mortgage Fund, administered by the California Housing Finance Agency (CalHFA), was launched to provide direct mortgage relief to homeowners whose primary residences were destroyed or rendered uninhabitable by qualifying disasters. Since its launch in June of 2025, the program has helped disaster-impacted homeowners across California stabilize their housing while navigating insurance claims and rising construction costs.

For Sonia Linares, an Altadena resident who lost her home during the 2025 fires, the program provided critical relief during an overwhelming period — and the expansion offers renewed hope.

“I tell people who are going through this to apply, because I did. The help I received eased a huge amount of stress during an incredibly difficult time. Knowing that more support is now available gives families like mine a real chance to keep moving forward while we rebuild.” Sonia Linares, Altadena

Learn about Sonia’s story here.