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With economic uncertainty keeping some people from buying homes, Clayton Homes is taking steps to try and ease their concern by offering new home buyers some help if they unexpectedly lose their job.

"We're making this commitment: If someone buys a home and then loses their job because of the economic downturn, we will make payments on their home for three months," said Kevin Clayton, president and CEO. "It won't cost the buyer a dime."

The goal is simple: encourage people to get into new homes and help them stay there.

"We hope no Clayton homeowner ever needs this help, but we know by offering this benefit we can help ease some concerns and help more families become homeowners," Clayton said.

The program was designed with potential first-time home buyers in mind, who can also take advantage of the $8,000 tax credit passed as part of the Economic Recovery Act.

"Similar programs to help home buyers have given them a tax deduction, in effect reducing their taxable income," said Clayton. "This program actually reduces the taxes they owe dollar for dollar over a three-year period. That's a huge difference."

6,000 anticipated

Clayton, a Berkshire-Hathaway company, anticipates 6,000 of its customers will take advantage of the Recovery Act tax credit with the mortgage Payment Protection Payment program as an additional lure.

Clayton's Payment Protection Program, which will continue for 24 months, is applicable for new homes purchased between now and the end of June. If the monthly mortgage payment includes homeowners insurance and property taxes, Clayton absorbs those costs as well.

Chris Nicely, vice president of marketing, said the Clayton Homes program differs from some others that suspend payments after a job loss but add the missed payments to the back end of the loan.

"The big difference is there is no cost to the consumer," he said. "If you happen to lose your job, even for a week, we will make three mortgage payments to help you get back on your feet."

Nicely said Clayton Homes sales in 2008 totaled 31,659, a decline from about 34,000 sold in 2007.

While Clayton's sales have not risen since a year ago, the traffic through the firm's home centers has increased significantly since then, according to Nicely. With more people apparently looking to buy, and the Payment Protection Program is designed to give potential customers added financial security as an incentive.

Despite the recession, Nicely said the company has held up well, as it has in previous economic downturns when it grew to be the nation's largest manufactured home builder and retailer.

"We've been extremely fortunate. When the economic softness is up, we are hoping to emerge stronger than ever," Nicely said.