Oklahoma City-based First Mortgage Company recently announced a new program that pays homeowners’ monthly loan payments if the homeowner becomes unemployed within the first two years of the mortgage.

The lender's program, Job Loss Payment Protection, covers borrowers' monthly mortgage payments, up to $1,800 for up to six months, should one of the signers on the loan lose their job. First Mortgage's guarantee is similar to the no-risk, peace-of-mind hook offered by a number of automobile makers lately.

George Akers, EVP at First Mortgage Company, explained, “Home prices are affordable, interest rates are the lowest they’ve been in decades, and first-time buyers get an $8,000 tax credit. The only reason people may not be buying now is fear of losing their jobs. Our mortgages with Job Loss Payment Protection eliminate that hurdle and relieve fear.”

The program is available on all new Federal Housing Administration (FHA), Veterans Affairs (VA), and U.S. Department of Agriculture loans, and covers loan principal, interest, taxes, and insurance. The company said the new unemployment guarantee will be offered at all First Mortgage Company locations in Colorado, Idaho, Nebraska, Oklahoma, Texas, and Washington.

Carrie Bay | 05.14.09 www.dsnews.com