An Austin home builder is offering some insurance for potential buyers who are concerned they may lose their jobs. Main Street Homes says they will pay your mortgage for up to six months if that happens to you.  

Main Street Homes is running an ad right now that says, "We are so confident in Austin that if you lose your job this year your mortgage will be paid for six months." 

It may seem too good to be true, but vice president of sales, Greg Smith, says believe it.

"There's been a lot of attention paid to the housing crisis on a national level. We're trying to offer some programs that the buyer needs to overcome the negativity,” he said. 

It's called the Help Program. Smith says if you lose your job during the first year of home-ownership, Main Street Homes will pay up to six months of your mortgage not to exceed $1,800 a month.

"It's a cost that is paid by Main Street Homes. It's not something that is passed onto the buyer. It's not something that the buyer has to maintain premiums on keeping up the insurance coverage,” said Smith.

Buyers have to use Main Street Homes lenders to get the deal. Smith says it's a good bet for his business.  In one year of offering this deal, four people have needed the help. 

Lenders say the deal is legit, but consumers need to be informed of their options. 

Sente Mortgage Advisor Joe Brown says quote, "The cost of the insurance is built into the price of the home, so the buyer is still paying for it.  It's the same for any "incentive" that a
builder offers. Certainly buyers should have the freedom to shop for a mortgage. HUD amended the RESPA (Real Estate Settlement Procedures Act) to include a new rule that as of January 16, 2009 home builders would not be able to require home buyers to use their affiliated lenders in order to get incentives, but it was delayed until April 15th on legal action by the largest builders,” said Joe Brown, a mortgage advisor for Sente.

The Help Program seems to be working. Smith says 50 homes have sold in the past four weeks.

"We're offering a lot of incentives. The interest rates are at a historical low. There's really never been a time to buy as good as this,” he said. 

In addition, lenders encourage buyers to shop around for the best rate.