California Proposition 37 would create low-cost home loan program
Proposition 37 would let the California Housing Finance Agency borrow up to $25 billion to help buyers purchase newly constructed homes and condos. The loans could cover up to 17% of a home's purchase price, potentially reducing the required down payment to 3% when combined with a typical mortgage. Supporters say it would make homeownership more attainable for middle-class buyers without taxpayer cost, while opponents argue the state should not intervene in the mortgage market.
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Proposition 37 would permit—but not require—California’s housing finance agency to borrow as much as $25 billion. The money would support loans for buyers of newly built homes and condominiums, covering up to 17% of the purchase price. Combined with a standard mortgage, that could lower the cash down payment to 3%, or $24,000 on an $800,000 home. Buyers would repay private lenders monthly, and eligibility would extend to households earning up to twice the local median income. Default risk would fall on private lenders rather than taxpayers.
Supporters include the California Democratic Party, Xavier Becerra, the California Association of Realtors, and the California Conference of Carpenters. They argue that a 20% down payment is unrealistic for many in California and that the plan could make middle-class homeownership more attainable without taxpayer cost. Opponents include Reform California and the League of Women Voters. They contend the state should not intervene in the mortgage market, that the measure may not address the root causes of high housing costs, and that it could simply enable more borrowing.
Count words? First paragraph: Proposition(1) 37(2) would(3) permit—but(4) not(5) require—California’s(6) housing(7) finance(8) agency(9) to(10) borrow(11) as(12) much(13) as(14) $25(15) billion(16). The(17) money(18) would(19) support(20) loans(21) for(22) buyers(23) of(24) newly(25) built(26) homes(27) and(28) condominiums,(29) covering(30) up(31) to(32) 17%(33