Californians will vote on Proposition 37 in November. The measure would allow the state to create a home loan program for middle income buyers.
If Prop. 37 passes, California’s Housing Finance Agency would be able to borrow up to $25-billion to fund home loans.
These loans could cut a buyer’s down payment to as low as three-percent, if paired with a typical mortgage.
To be eligible, buyers couldn’t earn more than a certain amount. That would vary from a little over $100,000 to nearly $350,000 for a family of three, depending on the county.
The homes would need to be new construction, or have never been sold before.
Prices would top out at around $1.5 million, again, depending on the county.
Private investors would be putting up the money so taxpayers would not be going into debt.
Supporters say the proposition would put homeownership within reach for middle class Californians. But some opponents say letting people go into deeper debt is not the best way to offset the housing crisis.